Carlyle Credit Income Fund (CCIF) N-CSRS Certified semi-annual shareholder report (management investment company)

united states
securities and exchange commission
washington, d.c. 20549

form n-csr

certified shareholder report of registered management
investment companies

Investment Company Act file number 811-22554

Vertical Capital Income Fund

(Exact name of registrant as specified in charter)

80 Arkay Drive, Suite 110, Hauppauge, NY 11788

(Address of principal executive offices) (Zip code)

James Ash, Gemini Fund Services, LLC

17605 Wright Street, Omaha, Nebraska, 68130

(Name and address of agent for service)

Registrant's telephone number, including area code: 631-470-2616

Date of fiscal year end: 9/30

Date of reporting period: 3/31/15

Item 1. Reports to Stockholders.

Vertical Capital Income Fund
Cusip: 92535C104
VCAPX
	Semi-Annual Report
	March 31, 2015
Investor Information: 1-866-277-VCIF
This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing contained herein is to be considered an offer of sale or solicitation of an offer to buy shares of the Vertical Capital Income Fund. Such offering is made only by prospectus, which includes details as to offering price and other material information.
Distributed by Northern Lights Distributors, LLC Member FINRA

March 31, 2015

Dear Shareholders:

The first half of our fiscal year has seen an environment of mixed economic reports, political uncertainty, interest rate speculation, and, consequently, market volatility.

Despite continued volatility in the markets, however, the Vertical Capital Income Fund had a six month total return (load waived) of 5.45%, while the Fund’s benchmark, the Barclays Capital Mortgage Backed Securities Index had a total return of 2.86% through March 31, 2015. Including the maximum load, the Fund had a six month total return of .70% through March 31, 2015.

The Fund’s comparatively strong returns are primarily due to the high level of interest income and lower interest rate sensitivity when compared to the benchmark, in addition to a growing collateral gap in our portfolio (as defined below). Additionally, the Fund produced a total distribution over the six month period of $.2663/share. Our current SEC Annual Yield is 4.09% as measured on March 31, 2015.

The period began with a market consensus that the end of the Fed’s bond buying program (Quantitative Easing) in October, along with improving economic growth, would lead to significant losses for fixed income investors. However, U.S. fixed-income securities rallied during the first half of the Fund’s fiscal year, resulting from weak economic growth abroad and new stimulus programs by central banks in Europe and Asia. Plummeting oil prices combined with the ongoing conflict in the Middle East and Ukraine, as well as political concerns in Greece fueled investor fears, driving overall demand for bonds. The yield on the 10-year U.S. Treasury note fell as low as 1.68% during the period, its lowest level since May 2013. This was combined with a volatile start to 2015 for fixed income in general, and was the fifth consecutive quarter of declines in US Treasuries, marking the longest of such periods since 2001.

The U.S. dollar strengthened against the euro, rising over 11%, which in turn led to losses in those indexes denominated in U.S. dollars but invested in foreign-denominated securities. As the European Central Bank began its quantitative easing program in early March, interest rates across Europe have hit new all-time lows. In our opinion, the flattening yield curve is being driven by a combination of the moderating economic condition in the United States, as well as increased demand from global investors who may be attracted to U.S.-denominated fixed-income securities for the higher yield and safety in the strengthening dollar.

There has also been increasing concern about the Federal Reserve raising rates; after the mid-March meeting, indications are now that the first increase in rates since 2006 is unlikely before September, as the Fed watches for signs of a rise in inflation. That being said, minutes from the Fed meeting suggest they haven’t ruled out a June rate increase.

Though the U.S. economic recovery has appeared to be picking up, with three consecutive quarters of positive GDP growth, accelerated hiring, and improving consumer confidence, early reports for the first quarter of 2015 are much less optimistic. Lower energy prices should benefit both consumers and businesses alike, but the sharp decline in oil prices has also created some uncertainty. Additionally, the US stock market, despite delivering a double-digit gain in the S&P 500 for the third consecutive year in 2014, has seen substantial volatility during the first half of our fiscal year, posting no gain during the first quarter of 2015. And, finally, though

1

the housing market has firmed up in certain areas, it has not as a whole. Despite historically low mortgage rates and improving home prices, there continue to be “trapped” homeowners who are unable to sell and qualify for a new mortgage or unable to qualify for refinance.

Given such a challenging backdrop, the performance of the Fund has remained positive. In the Fund, there are currently 960 residential mortgage notes with a total portfolio value of $153,897,538 and represents an outstanding unpaid principal balance of $189,161,006. The difference between the total portfolio value and the unpaid principal balance represents the “collateral gap,” which is valued at $35,263,468. (Note: The “collateral gap” in part represents the potential total return of the Fund over time.)

The portfolio is regionally diversified over 46 states. Since the inception of the Fund, December 31, 2011, we have had 46 notes that paid off at full value, which have realized the discount of the unpaid principal balance sooner.

Finally, the Fund assets under management grew from $108,356,388 on October 1, 2014 to $147,700,469 on March 31, 2015.

We believe the current environment bodes well for the Fund, as we continue to see many opportunities to make appropriate purchases that we believe will enhance the total return generated in the future. Of course, there is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

Thank you for your investment in the Vertical Capital Income Fund.

Regards,

Gus Altuzarra
Managing Member, Vertical Capital Asset Management, LLC

Chris Chase
Managing Member, Vertical Capital Asset Management, LLC

Barclays U.S. MBS Index (mortgage- backed securities) covers the mortgage- backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA) and Freddie Mac (FHLMC). The S&P 500® Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. Investors cannot directly invest in an index, and unmanaged index returns do not reflect any fees, expenses, or sales charges.

The Fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund’s distribution rate at a future time. The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, any short-term capital gains realized from the disposition of such investments will be paid out annually. A portion of the distributions may consist of a return of capital based on the character of the distributions received from the underlying holdings. Distributions shown are Cumulative.

2200-NLD-4/15/2015

2

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES - 104.4%
$	311,490	Loan ID 200001	Fixed	6.250%	4/1/2038	$	215,557
	122,563	Loan ID 200003	Balloon	7.250%	9/1/2035		88,636
	314,071	Loan ID 200004	Fixed	7.990%	10/1/2036		236,379
	165,773	Loan ID 200005	Fixed	4.750%	8/1/2039		142,078
	74,258	Loan ID 200006	ARM	7.990%	1/1/2036		56,134
	36,086	Loan ID 200007	ARM	6.000%	2/1/2028		25,955
	53,985	Loan ID 200008	ARM	3.875%	3/28/2035		33,760
	52,477	Loan ID 200012	ARM	9.800%	7/1/2037		44,131
	58,801	Loan ID 200013	Fixed	5.250%	9/1/2040		37,840
	36,114	Loan ID 200015	Fixed	7.000%	8/1/2030		26,733
	41,725	Loan ID 200016	ARM	10.375%	1/1/2031		37,076
	50,112	Loan ID 200017	ARM	6.375%	8/1/2030		37,490
	55,707	Loan ID 200018	Fixed	7.000%	1/1/2033		40,568
	64,089	Loan ID 200019	Fixed	4.000%	12/1/2036		39,585
	81,565	Loan ID 200020	Fixed	5.630%	7/1/2033		56,511
	102,035	Loan ID 200023	Fixed	5.875%	12/1/2050		68,976
	144,052	Loan ID 200025	ARM	2.875%	3/1/2034		83,935
	205,980	Loan ID 200026	Fixed	4.750%	1/1/2050		64,827
	228,102	Loan ID 200028	Fixed	3.750%	6/1/2050		211,734
	226,330	Loan ID 200029	Fixed	4.310%	7/1/2037		139,684
	242,669	Loan ID 200030	ARM	5.750%	1/1/2038		162,373
	284,504	Loan ID 200031	Fixed	5.000%	1/1/2051		248,552
	313,925	Loan ID 200032	Fixed	3.130%	1/1/2051		271,858
	433,500	Loan ID 200033	ARM	6.375%	6/1/2036		294,248
	574,209	Loan ID 200035	Fixed	3.000%	11/1/2050		329,951
	69,710	Loan ID 200036	Fixed	7.940%	1/12/2034		53,224
	169,307	Loan ID 200037	Fixed	7.800%	5/1/2035		127,071
	168,850	Loan ID 200038	ARM	6.498%	3/1/2037		114,856
	27,194	Loan ID 200039	Fixed	11.500%	11/5/2033		25,426
	126,660	Loan ID 200041	Fixed	4.875%	8/1/2039		79,875
	42,952	Loan ID 200042	Fixed	7.000%	12/1/2037		31,370
	65,718	Loan ID 200043	Fixed	6.125%	7/1/2039		44,652
	125,494	Loan ID 200045	Fixed	5.625%	12/1/2038		84,178
	41,377	Loan ID 200046	Fixed	8.000%	7/1/2027		34,704
	55,111	Loan ID 200048	Fixed	5.500%	8/1/2039		35,730
	245,831	Loan ID 200049	Fixed	3.875%	3/1/2042		207,676
	175,137	Loan ID 200050	ARM	5.250%	11/1/2050		115,749
	89,285	Loan ID 200051	Fixed	6.500%	10/1/2040		61,972
	163,213	Loan ID 200052	Fixed	5.125%	5/1/2040		107,321
	60,540	Loan ID 200053	Fixed	4.000%	9/1/2042		56,094
	58,015	Loan ID 200054	Fixed	8.250%	3/1/2039		44,341
	85,830	Loan ID 200055	Fixed	10.000%	1/5/2036		73,373
	280,487	Loan ID 200056	Fixed	7.375%	12/1/2037		210,154
	127,883	Loan ID 200057	ARM	2.625%	10/1/2036		109,254

The accompanying notes are an integral part of these financial statements.

3

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

��

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	61,248	Loan ID 200059	Fixed	6.000%	8/1/2039	$	41,211
	36,378	Loan ID 200060	Fixed	5.750%	8/1/2039		24,028
	35,912	Loan ID 200061	Fixed	5.750%	7/1/2024		28,491
	186,976	Loan ID 200064	Fixed	4.875%	4/1/2034		163,799
	27,629	Loan ID 200065	ARM	6.875%	1/1/2037		9,506
	152,369	Loan ID 200066	ARM	5.000%	1/1/2037		130,218
	691,377	Loan ID 200067	ARM	3.625%	7/1/2037		412,854
	230,588	Loan ID 200072	Fixed	5.040%	2/1/2051		136,559
	195,256	Loan ID 200073	Fixed	5.210%	2/1/2026		153,716
	173,102	Loan ID 200074	Fixed	5.110%	2/1/2031		124,975
	214,947	Loan ID 200075	Fixed	4.250%	2/1/2042		126,266
	178,601	Loan ID 200076	Fixed	4.250%	12/1/2041		105,066
	78,630	Loan ID 200077	Fixed	3.750%	8/1/2042		44,106
	36,480	Loan ID 200078	Fixed	7.000%	8/1/2036		34,003
	140,287	Loan ID 200079	Fixed	2.000%	8/1/2049		72,913
	93,195	Loan ID 200080	ARM	8.250%	5/1/2037		74,237
	78,177	Loan ID 200081	Fixed	2.000%	9/1/2037		66,591
	69,670	Loan ID 200082	Fixed	8.250%	4/1/2040		53,089
	116,706	Loan ID 200083	ARM	4.000%	10/1/2046		97,346
	192,689	Loan ID 200084	Fixed	7.000%	3/1/2039		141,770
	167,571	Loan ID 200086	Fixed	2.000%	11/1/2050		143,387
	228,254	Loan ID 200087	Fixed	5.000%	3/1/2051		148,755
	127,453	Loan ID 200088	Fixed	7.000%	6/1/2039		93,773
	273,110	Loan ID 200089	Fixed	2.000%	3/1/2052		145,446
	74,550	Loan ID 200090	Fixed	2.000%	11/1/2036		63,737
	292,524	Loan ID 200091	Fixed	2.000%	11/1/2051		154,356
	277,600	Loan ID 200092	Fixed	2.375%	5/1/2036		153,317
	141,230	Loan ID 200093	Fixed	4.000%	2/1/2038		127,348
	234,518	Loan ID 200094	ARM	2.625%	9/1/2037		199,224
	222,354	Loan ID 200096	ARM	4.375%	8/1/2037		137,770
	118,758	Loan ID 200097	ARM	2.625%	6/1/2035		66,615
	82,342	Loan ID 200099	Fixed	8.250%	3/1/2040		62,771
	388,888	Loan ID 200100	Fixed	2.000%	7/1/2037		204,939
	76,051	Loan ID 200102	Fixed	8.250%	3/1/2040		60,581
	106,429	Loan ID 200103	ARM	3.250%	9/1/2034		64,231
	121,388	Loan ID 200105	Fixed	2.000%	12/1/2050		104,286
	97,102	Loan ID 200106	Fixed	2.000%	2/1/2052		84,019
	329,510	Loan ID 200107	Fixed	2.000%	7/1/2052		173,201
	193,159	Loan ID 200108	Fixed	3.000%	6/1/2047		96,895
	47,162	Loan ID 200109	ARM	2.750%	4/1/2038		39,607
	116,147	Loan ID 200110	Fixed	8.250%	8/1/2039		136,148
	188,589	Loan ID 200111	Fixed	5.000%	11/1/2050		122,513
	307,616	Loan ID 200112	Fixed	2.000%	9/1/2049		163,390
	204,470	Loan ID 200113	ARM	2.950%	7/1/2037		113,932

The accompanying notes are an integral part of these financial statements.

4

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal				Loan Type	Interest Rate	Maturity	Value
			MORTGAGE NOTES (Continued) - 104.4%
$	116,690		Loan ID 200114	Fixed	2.000%	10/1/2051	$	62,115
	270,203		Loan ID 200115	Fixed	2.000%	11/1/2051		140,438
	152,023		Loan ID 200116	Fixed	7.125%	3/1/2039		112,207
	86,608		Loan ID 200118	ARM	2.625%	6/1/2035		49,428
	102,931		Loan ID 200121	ARM	2.625%	1/1/2035		59,054
	148,167		Loan ID 200122	ARM	2.625%	6/1/2035		84,561
	147,072		Loan ID 200124	ARM	3.450%	6/1/2037		85,213
	314,564		Loan ID 200125	Fixed	2.000%	5/1/2051		268,353
	129,421		Loan ID 200126	Fixed	8.250%	8/1/2039		98,621
	145,373		Loan ID 200127	Fixed	5.000%	8/1/2039		94,590
	52,474		Loan ID 200128	Fixed	2.000%	7/1/2037		44,715
	469,154		Loan ID 200129	Fixed	4.625%	3/1/2052		297,105
	109,621		Loan ID 200130	Fixed	4.500%	8/1/2042		92,876
	38,205		Loan ID 200131	Fixed	3.875%	11/1/2027		34,507
	237,778		Loan ID 200133	Fixed	3.490%	1/1/2043		199,719
	191,854		Loan ID 200134	Fixed	3.750%	12/1/2042		174,081
	128,123		Loan ID 200135	Fixed	4.375%	12/1/2042		110,140
	261,151		Loan ID 200136	Fixed	2.875%	10/1/2027		235,591
	131,482		Loan ID 200137	Fixed	4.500%	9/1/2042		114,692
	52,593		Loan ID 200139	Fixed	4.625%	5/1/2027		38,206
	44,036		Loan ID 200140	Fixed	3.625%	12/1/2027		39,735
	82,502		Loan ID 200141	Fixed	4.250%	2/1/2042		69,168
	188,187		Loan ID 200142	Fixed	3.300%	1/1/2037		110,234
	132,015		Loan ID 200143	Fixed	3.000%	2/1/2037		106,700
	559,137		Loan ID 200144	ARM	2.625%	10/1/2036		312,333
	285,815		Loan ID 200145	Fixed	2.000%	8/1/2051		245,454
	251,474		Loan ID 200147	ARM	3.125%	9/1/2037		144,271
	140,541		Loan ID 200148	ARM	3.125%	9/1/2037		79,189
	164,249		Loan ID 200149	ARM	3.125%	9/1/2037		116,732
	215,838		Loan ID 200150	ARM	3.125%	9/1/2037		121,615
	102,838		Loan ID 200151	ARM	3.125%	8/1/2037		58,009
	100,325		Loan ID 200152	ARM	3.125%	9/1/2037		85,910
	1,818,056		Loan ID 200153	ARM	2.875%	4/1/2037		1,546,079
	100,842		Loan ID 200154	Fixed	11.050%	9/1/2037		91,381
	55,828		Loan ID 200156	Fixed	8.130%	9/19/2032		43,520
	126,376		Loan ID 200157	Fixed	3.750%	1/1/2043		111,996
	164,260		Loan ID 200158	Fixed	3.625%	12/1/2042		148,991
	190,037		Loan ID 200159	Fixed	3.750%	6/1/2042		162,977
	132,878		Loan ID 200160	Fixed	3.250%	2/1/2043		72,381
	488,330		Loan ID 200161	Fixed	3.875%	11/1/2041		413,009
	234,685		Loan ID 200162	Fixed	3.875%	7/1/2042		198,031
	124,609		Loan ID 200163	Fixed	4.000%	1/1/2042		105,417
	106,739	��	Loan ID 200164	Fixed	4.000%	7/1/2042		101,637
	206,331		Loan ID 200165	Fixed	4.375%	12/1/2041		175,040

The accompanying notes are an integral part of these financial statements.

5

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	127,222	Loan ID 200166	Fixed	4.000%	2/1/2032	$	112,231
	134,344	Loan ID 200168	Fixed	3.750%	10/1/2042		113,164
	25,577	Loan ID 200169	Fixed	6.923%	9/1/2034		18,262
	450,693	Loan ID 200170	ARM	2.625%	10/1/2036		247,336
	103,138	Loan ID 200171	Fixed	6.500%	4/1/2036		89,033
	146,949	Loan ID 200172	Fixed	7.250%	2/1/2037		105,212
	203,807	Loan ID 200173	Fixed	3.575%	10/1/2046		77,266
	94,745	Loan ID 200174	Fixed	7.340%	4/1/2037		68,167
	55,487	Loan ID 200175	Fixed	9.600%	5/1/2037		45,841
	103,103	Loan ID 200176	Fixed	6.600%	3/1/2037		70,205
	67,963	Loan ID 200177	Fixed	8.000%	1/11/2022		60,596
	44,014	Loan ID 200178	Fixed	6.500%	5/10/2016		42,687
	28,683	Loan ID 200179	Fixed	7.250%	7/27/2019		18,722
	19,904	Loan ID 200180	Fixed	6.500%	7/8/2016		19,231
	113,223	Loan ID 200181	Fixed	7.500%	3/1/2016		110,190
	93,549	Loan ID 200182	Fixed	8.750%	10/10/2016		90,520
	277,409	Loan ID 200183	Fixed	4.125%	12/1/2032		229,295
	76,739	Loan ID 200184	Fixed	4.375%	12/1/2042		61,203
	29,250	Loan ID 200185	Fixed	5.375%	6/1/2042		18,779
	55,827	Loan ID 200186	Fixed	5.125%	8/1/2042		49,050
	55,581	Loan ID 200187	Fixed	5.875%	12/1/2039		36,968
	156,618	Loan ID 200188	Fixed	3.875%	2/1/2043		131,867
	176,221	Loan ID 200189	Fixed	4.125%	8/1/2042		146,196
	352,156	Loan ID 200190	Fixed	3.625%	11/1/2042		320,217
	137,009	Loan ID 200191	Fixed	4.125%	11/1/2042		112,561
	195,090	Loan ID 200192	Fixed	4.250%	11/1/2042		177,684
	99,794	Loan ID 200193	Fixed	3.875%	6/1/2042		90,854
	171,148	Loan ID 200194	Fixed	4.750%	9/1/2041		146,283
	280,058	Loan ID 200195	Fixed	3.875%	3/1/2042		236,587
	104,763	Loan ID 200196	Fixed	4.500%	1/1/2043		90,679
	40,720	Loan ID 200197	Fixed	4.750%	11/1/2042		35,474
	42,500	Loan ID 200198	Fixed	5.250%	10/1/2042		35,848
	301,205	Loan ID 200199	Fixed	4.000%	9/1/2042		286,796
	256,724	Loan ID 200200	Fixed	3.875%	9/1/2042		207,990
	61,360	Loan ID 200201	Fixed	5.125%	8/1/2041		53,931
	61,620	Loan ID 200202	Fixed	4.375%	12/1/2042		58,049
	290,684	Loan ID 200203	Fixed	4.250%	8/1/2042		245,856
	151,137	Loan ID 200204	Fixed	3.875%	7/1/2042		122,465
	77,817	Loan ID 200205	Fixed	5.000%	11/1/2041		68,209
	25,013	Loan ID 200206	Fixed	3.990%	12/1/2042		21,092
	613,112	Loan ID 200207	ARM	3.625%	3/1/2042		583,826
	51,809	Loan ID 200208	Fixed	4.250%	1/1/2043		38,819
	221,252	Loan ID 200209	Fixed	3.875%	8/1/2042		199,096
	92,286	Loan ID 200210	Fixed	4.625%	5/1/2043		84,231

The accompanying notes are an integral part of these financial statements.

6

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	221,960	Loan ID 200211	Fixed	3.750%	5/1/2042	$	205,632
	141,418	Loan ID 200212	Fixed	3.875%	2/1/2042		112,845
	300,366	Loan ID 200213	Fixed	4.125%	1/1/2038		203,283
	61,851	Loan ID 200214	Fixed	5.750%	7/1/2039		51,271
	120,557	Loan ID 200216	Fixed	5.750%	9/1/2039		94,904
	147,551	Loan ID 200217	Fixed	5.250%	7/1/2040		121,668
	78,697	Loan ID 200218	Fixed	4.250%	12/1/2041		49,085
	208,235	Loan ID 200219	Fixed	4.250%	4/1/2043		195,335
	224,430	Loan ID 200220	Fixed	3.875%	5/1/2043		185,077
	173,298	Loan ID 200221	Fixed	4.250%	4/1/2043		161,940
	131,879	Loan ID 200222	Fixed	4.125%	5/1/2043		109,555
	259,087	Loan ID 200223	Fixed	4.125%	5/1/2043		236,859
	221,092	Loan ID 200224	Fixed	4.000%	7/1/2043		188,702
	85,476	Loan ID 200226	Fixed	5.250%	7/1/2041		79,006
	53,811	Loan ID 200228	Fixed	4.625%	8/1/2042		46,779
	171,201	Loan ID 200229	Fixed	3.750%	7/1/2042		152,736
	153,557	Loan ID 200230	Fixed	3.500%	2/1/2043		129,978
	136,816	Loan ID 200231	Fixed	3.625%	12/1/2042		78,427
	72,443	Loan ID 200232	Fixed	3.875%	8/1/2042		58,424
	196,140	Loan ID 200233	Fixed	2.990%	11/1/2027		166,767
	193,859	Loan ID 200234	Fixed	3.250%	1/1/2043		133,906
	97,846	Loan ID 200235	Fixed	3.750%	12/1/2042		88,782
	169,329	Loan ID 200236	Fixed	4.250%	10/1/2042		149,518
	491,082	Loan ID 200237	ARM	2.750%	9/1/2033		429,974
	334,363	Loan ID 200238	ARM	3.625%	7/1/2035		313,919
	107,931	Loan ID 200239	ARM	3.990%	5/1/2036		91,495
	152,344	Loan ID 200242	Fixed	3.250%	10/1/2042		106,360
	124,502	Loan ID 200243	Fixed	3.750%	4/1/2043		100,005
	30,023	Loan ID 200244	Fixed	5.000%	5/1/2042		24,950
	212,245	Loan ID 200245	Fixed	3.875%	3/1/2043		179,980
	96,510	Loan ID 200286	Fixed	4.500%	7/1/2043		86,149
	105,299	Loan ID 200287	Fixed	4.375%	7/1/2043		87,824
	353,789	Loan ID 200288	Fixed	4.375%	11/1/2041		279,464
	356,773	Loan ID 200289	Fixed	5.500%	9/1/2043		327,844
	303,781	Loan ID 200290	Fixed	4.250%	4/1/2043		261,184
	460,567	Loan ID 200292	Fixed	3.875%	6/1/2043		394,623
	28,725	Loan ID 200293	Fixed	4.125%	3/1/2043		24,703
	187,843	Loan ID 200294	Fixed	3.875%	2/1/2043		158,740
	267,796	Loan ID 200295	Fixed	3.875%	6/1/2043		239,048
	218,209	Loan ID 200296	Fixed	3.250%	2/1/2043		174,241
	188,592	Loan ID 200297	Fixed	3.375%	10/1/2042		151,113
	149,584	Loan ID 200298	Fixed	3.250%	6/1/2043		119,198
	204,078	Loan ID 200299	Fixed	3.625%	10/1/2042		168,032
	121,368	Loan ID 200300	Fixed	8.400%	10/20/2037		101,613

The accompanying notes are an integral part of these financial statements.

7

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	79,826	Loan ID 200301	Fixed	4.625%	7/1/2043	$	71,547
	105,069	Loan ID 200302	Fixed	9.875%	10/1/2035		88,710
	60,800	Loan ID 200303	Fixed	5.250%	10/1/2032		49,795
	148,832	Loan ID 200304	Fixed	7.250%	10/1/2033		128,705
	254,260	Loan ID 200305	Fixed	7.000%	3/1/2036		209,561
	741,542	Loan ID 200306	Fixed	4.870%	5/1/2049		640,976
	52,138	Loan ID 200307	Fixed	6.500%	7/1/2031		45,087
	112,732	Loan ID 200308	ARM	6.750%	5/1/2035		98,434
	218,785	Loan ID 200309	Fixed	2.000%	12/1/2048		182,582
	173,414	Loan ID 200310	Fixed	8.000%	9/1/2039		110,101
	135,975	Loan ID 200312	Fixed	9.000%	4/1/2039		115,110
	48,476	Loan ID 200313	Fixed	8.500%	3/1/2028		39,133
	64,678	Loan ID 200314	Fixed	8.000%	3/1/2040		48,781
	327,622	Loan ID 200315	ARM	3.500%	6/1/2037		240,713
	138,141	Loan ID 200316	Fixed	6.850%	7/1/2035		96,049
	78,911	Loan ID 200317	Fixed	7.000%	9/1/2032		67,704
	285,884	Loan ID 200318	Fixed	6.500%	10/1/2036		243,903
	67,919	Loan ID 200319	ARM	2.750%	12/1/2034		53,323
	304,897	Loan ID 200321	Fixed	2.375%	6/1/2049		240,628
	140,088	Loan ID 200322	Fixed	7.375%	8/1/2033		125,644
	204,854	Loan ID 200323	ARM	2.875%	1/1/2035		175,250
	353,416	Loan ID 200324	Fixed	5.500%	11/1/2037		305,388
	248,344	Loan ID 200325	Fixed	6.000%	5/1/2042		174,467
	80,166	Loan ID 200326	Fixed	8.375%	10/1/2036		68,341
	156,543	Loan ID 200327	Fixed	6.790%	10/26/2036		116,197
	999,822	Loan ID 200328	ARM	6.250%	7/1/2038		865,323
	117,986	Loan ID 200329	Fixed	6.880%	3/1/2036		110,072
	263,379	Loan ID 200330	Fixed	7.000%	8/1/2037		203,780
	79,266	Loan ID 200331	ARM	6.500%	7/1/2033		67,695
	107,477	Loan ID 200332	Fixed	5.775%	10/1/2037		95,463
	214,618	Loan ID 200333	Fixed	5.875%	5/1/2021		177,004
	93,262	Loan ID 200334	Fixed	7.000%	1/1/2033		82,830
	280,739	Loan ID 200335	Fixed	2.000%	11/1/2052		227,067
	58,706	Loan ID 200336	Fixed	7.000%	12/1/2042		45,477
	47,526	Loan ID 200337	Fixed	7.000%	10/1/2034		44,188
	56,185	Loan ID 200338	ARM	10.500%	8/1/2029		49,902
	175,303	Loan ID 200339	Fixed	2.000%	10/1/2033		151,693
	37,021	Loan ID 200340	Fixed	7.000%	3/1/2030		26,663
	189,118	Loan ID 200341	Fixed	7.000%	8/1/2035		171,433
	27,100	Loan ID 200342	Fixed	5.375%	10/1/2019		23,617
	89,490	Loan ID 200343	ARM	7.750%	6/1/2034		74,418
	73,446	Loan ID 200345	Fixed	9.625%	1/1/2033		63,481
	466,251	Loan ID 200346	Fixed	6.250%	1/1/2045		324,231
	66,106	Loan ID 200348	Fixed	6.500%	7/1/2038		46,455

The accompanying notes are an integral part of these financial statements.

8

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	142,795	Loan ID 200349	Fixed	7.000%	1/1/2037	$	119,380
	63,154	Loan ID 200350	Fixed	7.500%	3/1/2029		47,581
	132,823	Loan ID 200351	ARM	3.625%	6/1/2036		77,459
	73,663	Loan ID 200352	Fixed	7.000%	8/1/2030		65,698
	92,627	Loan ID 200354	ARM	6.875%	11/1/2033		75,100
	45,198	Loan ID 200355	ARM	7.875%	7/1/2032		33,399
	87,794	Loan ID 200356	ARM	7.100%	2/1/2036		61,845
	111,947	Loan ID 200357	Fixed	8.500%	4/1/2027		93,238
	151,970	Loan ID 200358	Fixed	2.000%	4/1/2025		143,306
	257,402	Loan ID 200359	ARM	2.625%	2/1/2036		210,027
	32,361	Loan ID 200360	ARM	2.875%	1/1/2025		29,517
	75,093	Loan ID 200361	Fixed	7.500%	1/1/2034		69,903
	112,132	Loan ID 200362	Fixed	2.750%	11/1/2034		58,258
	149,863	Loan ID 200363	Fixed	6.000%	3/1/2049		117,032
	94,394	Loan ID 200364	Fixed	10.000%	11/1/2037		78,037
	221,154	Loan ID 200365	ARM	2.950%	8/1/2037		123,085
	71,685	Loan ID 200366	Fixed	6.250%	1/1/2033		64,222
	236,721	Loan ID 200368	Fixed	4.500%	4/1/2036		215,566
	276,913	Loan ID 200369	Fixed	6.000%	4/1/2044		247,187
	194,640	Loan ID 200370	ARM	5.500%	6/1/2035		181,980
	206,278	Loan ID 200372	ARM	2.625%	5/1/2036		114,058
	62,137	Loan ID 200373	Fixed	7.000%	12/1/2036		40,908
	79,279	Loan ID 200374	ARM	7.000%	5/1/2034		65,628
	103,164	Loan ID 200375	Fixed	7.000%	11/1/2036		68,043
	439,744	Loan ID 200376	Fixed	2.900%	6/1/2053		389,662
	84,807	Loan ID 200377	ARM	4.500%	10/1/2036		74,362
	237,316	Loan ID 200378	Fixed	5.500%	3/1/2038		204,976
	111,059	Loan ID 200379	Fixed	8.250%	3/1/2039		103,179
	189,774	Loan ID 200380	Fixed	4.220%	4/1/2049		168,417
	291,269	Loan ID 200381	Fixed	4.780%	6/1/2037		272,097
	114,030	Loan ID 200382	Fixed	4.850%	7/1/2037		96,238
	400,615	Loan ID 200383	Fixed	5.030%	12/1/2046		381,577
	303,732	Loan ID 200384	Fixed	5.000%	11/1/2047		227,908
	149,759	Loan ID 200385	Fixed	8.250%	1/1/2040		152,477
	229,366	Loan ID 200386	Fixed	6.000%	3/1/2041		204,564
	78,515	Loan ID 200387	Fixed	4.000%	6/1/2039		67,550
	198,538	Loan ID 200388	Fixed	4.000%	3/1/2051		161,948
	124,383	Loan ID 200389	Fixed	4.820%	8/1/2047		108,815
	206,655	Loan ID 200390	Fixed	4.000%	4/16/2047		169,092
	185,618	Loan ID 200391	Fixed	4.000%	1/13/2035		163,253
	69,233	Loan ID 200392	Fixed	10.000%	6/5/2034		66,354
	108,982	Loan ID 200393	Fixed	5.070%	8/1/2037		95,412
	133,616	Loan ID 200394	Fixed	7.150%	8/1/2037		124,395
	82,626	Loan ID 200395	Fixed	4.860%	4/1/2047		73,892

The accompanying notes are an integral part of these financial statements.

9

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	75,359	Loan ID 200396	Fixed	10.000%	2/1/2036	$	72,272
	129,913	Loan ID 200397	ARM	9.375%	9/1/2037		107,597
	142,841	Loan ID 200398	Fixed	4.800%	2/1/2037		120,447
	82,913	Loan ID 200399	Fixed	4.980%	6/1/2037		60,778
	369,227	Loan ID 200400	Fixed	8.450%	12/1/2036		350,963
	528,615	Loan ID 200401	Fixed	5.000%	8/1/2047		413,570
	55,751	Loan ID 200403	Fixed	8.300%	10/15/2032		49,479
	59,639	Loan ID 200404	Fixed	8.100%	5/1/2037		55,451
	103,942	Loan ID 200405	Fixed	4.870%	12/1/2035		95,152
	119,011	Loan ID 200406	Fixed	4.875%	10/1/2051		113,682
	240,939	Loan ID 200407	Fixed	6.500%	4/1/2042		227,402
	210,788	Loan ID 200408	Fixed	6.000%	4/1/2039		162,883
	351,470	Loan ID 200409	Fixed	6.000%	2/1/2049		277,990
	69,542	Loan ID 200410	ARM	8.500%	6/1/2037		55,854
	109,345	Loan ID 200411	Fixed	8.275%	6/1/2037		105,404
	295,281	Loan ID 200412	Fixed	7.750%	8/1/2040		224,497
	256,190	Loan ID 200413	Fixed	5.150%	11/1/2047		250,447
	202,418	Loan ID 200414	Fixed	5.000%	4/1/2049		155,141
	86,364	Loan ID 200415	Fixed	6.000%	4/1/2050		82,667
	186,357	Loan ID 200416	Fixed	4.670%	8/1/2053		159,569
	74,171	Loan ID 200417	Fixed	7.000%	5/1/2035		71,789
	59,813	Loan ID 200418	Fixed	4.000%	6/1/2035		51,727
	176,578	Loan ID 200419	Fixed	4.000%	12/19/2035		168,389
	175,425	Loan ID 200420	Fixed	4.225%	4/10/2038		156,060
	79,087	Loan ID 200421	Fixed	7.710%	8/1/2037		70,003
	139,318	Loan ID 200422	Fixed	3.830%	8/1/2053		117,492
	135,024	Loan ID 200423	Fixed	4.500%	6/1/2043		115,150
	124,859	Loan ID 200424	Fixed	4.000%	9/1/2028		110,667
	262,037	Loan ID 200427	Fixed	3.625%	3/1/2043		233,407
	185,331	Loan ID 200429	Fixed	3.875%	12/1/2042		133,916
	234,997	Loan ID 200430	Fixed	3.625%	7/1/2043		210,188
	197,002	Loan ID 200431	Fixed	4.625%	7/1/2043		177,353
	317,232	Loan ID 200432	Fixed	4.875%	5/1/2043		289,554
	133,985	Loan ID 200433	Fixed	4.250%	8/1/2043		122,415
	165,584	Loan ID 200434	Fixed	5.250%	10/1/2043		153,594
	203,211	Loan ID 200435	Fixed	4.625%	11/1/2052		161,214
	223,547	Loan ID 200436	Fixed	3.750%	4/1/2043		208,058
	340,360	Loan ID 200437	Fixed	5.625%	10/1/2043		316,201
	46,417	Loan ID 200439	Fixed	5.000%	8/1/2041		40,275
	6,481	Loan ID 200440	Fixed	8.000%	6/1/2016		6,461
	199,785	Loan ID 200441	Fixed	4.440%	4/15/2015		198,649
	441,256	Loan ID 200442	Fixed	5.000%	12/1/2043		342,606
	278,539	Loan ID 200443	Fixed	3.000%	7/1/2049		177,137
	269,162	Loan ID 200444	Fixed	4.380%	11/1/2038		152,750

The accompanying notes are an integral part of these financial statements.

10

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	169,814	Loan ID 200445	Fixed	5.250%	2/1/2039	$	160,703
	1,129	Loan ID 200446	Fixed	7.000%	5/1/2015		912
	58,685	Loan ID 200447	Fixed	5.875%	11/4/2034		53,917
	78,666	Loan ID 200448	Fixed	5.750%	5/1/2042		47,850
	130,517	Loan ID 200449	Fixed	5.000%	7/1/2041		118,930
	68,472	Loan ID 200450	Fixed	4.100%	12/1/2025		50,011
	374,570	Loan ID 200451	Fixed	6.250%	7/1/2038		335,866
	141,647	Loan ID 200452	Fixed	2.000%	11/1/2041		95,484
	17,422	Loan ID 200453	Fixed	4.550%	3/1/2026		13,663
	255,360	Loan ID 200456	Fixed	2.000%	11/1/2038		237,293
	218,421	Loan ID 200457	Fixed	5.750%	12/10/2030		167,998
	149,737	Loan ID 200458	Fixed	6.625%	12/1/2038		114,753
	195,023	Loan ID 200460	Fixed	7.000%	7/1/2041		194,253
	283,802	Loan ID 200461	Fixed	4.750%	6/20/2044		166,270
	391,628	Loan ID 200462	Fixed	6.000%	7/1/2037		207,461
	158,299	Loan ID 200463	Fixed	6.000%	3/1/2037		95,576
	411,571	Loan ID 200464	ARM	8.750%	8/1/2037		249,590
	254,445	Loan ID 200465	Fixed	6.500%	7/1/2037		168,036
	462,718	Loan ID 200466	Fixed	7.000%	7/1/2037		303,435
	333,443	Loan ID 200467	Fixed	5.500%	9/1/2044		220,106
	96,654	Loan ID 200468	Fixed	5.625%	12/1/2044		54,060
	134,201	Loan ID 200469	Fixed	6.500%	7/1/2037		117,376
	246,755	Loan ID 200470	Fixed	4.625%	7/1/2043		193,515
	368,428	Loan ID 200472	Fixed	4.250%	9/1/2042		329,654
	304,459	Loan ID 200473	Fixed	4.000%	12/1/2042		239,688
	246,654	Loan ID 200474	Fixed	5.750%	11/1/2050		216,441
	172,992	Loan ID 200475	Fixed	5.450%	7/1/2049		148,241
	195,084	Loan ID 200476	Fixed	6.000%	9/1/2050		167,183
	242,578	Loan ID 200477	Fixed	4.125%	12/1/2028		222,140
	187,577	Loan ID 200478	Fixed	3.625%	9/1/2042		148,871
	143,588	Loan ID 200479	Fixed	3.500%	8/1/2026		129,290
	249,477	Loan ID 200480	ARM	3.750%	7/1/2041		199,659
	178,644	Loan ID 200481	ARM	3.500%	8/1/2041		147,647
	123,996	Loan ID 200482	Fixed	4.375%	11/1/2028		111,589
	116,481	Loan ID 200483	Fixed	4.375%	11/1/2028		105,609
	408,769	Loan ID 200484	Fixed	4.250%	12/1/2043		350,032
	77,909	Loan ID 200485	Fixed	4.125%	2/1/2043		66,615
	260,753	Loan ID 200486	Fixed	3.500%	1/1/2043		219,032
	476,755	Loan ID 200487	Fixed	6.000%	3/1/2037		309,635
	165,421	Loan ID 200488	Fixed	4.250%	1/1/2044		143,214
	119,437	Loan ID 200489	Fixed	4.000%	3/1/2043		101,559
	91,000	Loan ID 200490	Fixed	4.000%	11/1/2028		80,576
	213,497	Loan ID 200491	Fixed	5.500%	10/1/2039		189,756
	126,328	Loan ID 200492	Fixed	4.000%	1/1/2043		108,306

The accompanying notes are an integral part of these financial statements.

11

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	75,999	Loan ID 200493	Fixed	4.500%	12/1/2025	$	68,907
	286,788	Loan ID 200494	Fixed	4.625%	10/1/2043		256,951
	367,015	Loan ID 200495	Fixed	4.875%	12/1/2041		320,837
	209,518	Loan ID 200496	Fixed	3.875%	2/1/2043		186,850
	338,085	Loan ID 200497	Fixed	3.250%	4/1/2043		283,144
	271,094	Loan ID 200498	Fixed	4.000%	2/1/2043		240,279
	282,833	Loan ID 200499	Fixed	4.250%	1/1/2043		244,617
	229,449	Loan ID 200500	Fixed	5.875%	2/1/2037		182,824
	156,403	Loan ID 200501	Fixed	7.250%	12/1/2037		135,890
	145,813	Loan ID 200502	Fixed	5.000%	6/1/2049		119,743
	272,179	Loan ID 200503	Fixed	7.500%	8/1/2037		235,320
	401,703	Loan ID 200504	Fixed	3.375%	3/1/2043		336,869
	145,967	Loan ID 200505	Fixed	3.500%	4/1/2043		111,315
	77,229	Loan ID 200507	Fixed	4.500%	9/1/2042		64,165
	264,071	Loan ID 200508	Fixed	2.000%	10/1/2040		193,080
	213,095	Loan ID 200509	Fixed	2.000%	12/1/2052		155,916
	255,730	Loan ID 200511	Fixed	4.875%	1/1/2044		229,664
	133,804	Loan ID 200512	Fixed	2.875%	2/1/2035		112,100
	177,342	Loan ID 200513	Fixed	3.000%	10/1/2038		140,683
	345,829	Loan ID 200514	Fixed	3.000%	4/1/2047		262,491
	103,287	Loan ID 200515	Fixed	8.250%	2/1/2039		94,925
	394,666	Loan ID 200516	Fixed	5.250%	1/1/2037		338,865
	107,357	Loan ID 200517	Fixed	8.000%	5/1/2039		96,229
	209,502	Loan ID 200518	Fixed	3.000%	12/1/2050		173,347
	325,346	Loan ID 200519	Fixed	3.000%	11/1/2049		265,742
	69,428	Loan ID 200520	Fixed	3.260%	7/1/2053		54,001
	231,578	Loan ID 200521	ARM	3.125%	8/1/2037		190,890
	389,888	Loan ID 200522	ARM	3.125%	9/1/2037		313,119
	447,117	Loan ID 200523	ARM	3.125%	9/1/2037		327,884
	127,528	Loan ID 200524	Fixed	3.500%	6/1/2043		108,813
	297,650	Loan ID 200525	Fixed	3.250%	12/1/2042		254,481
	164,002	Loan ID 200526	Fixed	3.625%	3/1/2043		140,114
	115,362	Loan ID 200527	Fixed	4.500%	12/1/2043		102,751
	141,625	Loan ID 200528	Fixed	4.375%	2/1/2044		125,201
	410,353	Loan ID 200529	Fixed	4.625%	2/1/2044		370,032
	33,560	Loan ID 200530	Fixed	5.375%	2/1/2044		26,986
	180,849	Loan ID 200531	Fixed	4.625%	11/1/2043		166,811
	118,008	Loan ID 200532	Fixed	3.250%	7/1/2043		100,495
	141,517	Loan ID 200533	Fixed	4.250%	1/1/2044		116,308
	254,570	Loan ID 200535	Fixed	4.375%	11/1/2043		233,325
	63,423	Loan ID 200536	Fixed	3.750%	10/1/2042		42,288
	127,873	Loan ID 200537	Fixed	4.500%	3/1/2042		102,370
	97,153	Loan ID 200538	Fixed	4.750%	1/1/2043		86,425
	276,754	Loan ID 200539	Fixed	4.500%	2/1/2043		231,081

The accompanying notes are an integral part of these financial statements.

12

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	87,660	Loan ID 200540	Fixed	3.875%	2/1/2043	$	75,075
	84,380	Loan ID 200541	Fixed	7.875%	9/1/2037		59,268
	188,042	Loan ID 200542	Fixed	4.500%	4/1/2037		140,299
	57,622	Loan ID 200543	ARM	7.250%	2/1/2037		40,684
	393,593	Loan ID 200544	Fixed	5.000%	2/1/2044		361,369
	63,189	Loan ID 200545	Fixed	4.375%	2/1/2029		54,256
	125,441	Loan ID 200546	Fixed	5.375%	12/1/2043		110,008
	269,960	Loan ID 200547	Fixed	3.750%	3/1/2043		234,598
	175,927	Loan ID 200548	Fixed	5.250%	2/1/2044		159,699
	91,583	Loan ID 200549	Fixed	4.250%	1/1/2029		81,021
	177,517	Loan ID 200550	Fixed	3.750%	3/1/2043		151,869
	319,401	Loan ID 200551	Fixed	4.375%	1/1/2044		284,310
	201,081	Loan ID 200552	Fixed	4.500%	1/1/2044		179,079
	291,021	Loan ID 200553	Fixed	4.625%	12/1/2043		265,053
	227,583	Loan ID 200555	Fixed	4.375%	1/1/2044		201,726
	406,158	Loan ID 200556	Fixed	3.625%	12/1/2028		358,929
	112,301	Loan ID 200557	Fixed	9.077%	8/1/2035		91,029
	104,683	Loan ID 200558	Fixed	6.590%	7/1/2037		85,594
	196,970	Loan ID 200559	Fixed	9.500%	4/14/2035		159,017
	127,336	Loan ID 200560	Fixed	5.750%	5/1/2035		104,921
	226,155	Loan ID 200561	Fixed	6.375%	12/1/2036		185,528
	159,568	Loan ID 200562	ARM	3.000%	5/1/2037		134,623
	234,223	Loan ID 200563	Fixed	5.125%	1/1/2039		194,419
	144,328	Loan ID 200564	Fixed	4.875%	5/1/2039		118,809
	533,642	Loan ID 200565	Fixed	4.000%	6/1/2037		452,704
	373,472	Loan ID 200566	Fixed	6.500%	7/1/2047		308,326
	137,549	Loan ID 200567	Fixed	3.375%	5/1/2043		117,332
	64,394	Loan ID 200568	Fixed	4.000%	12/1/2043		57,258
	102,442	Loan ID 200569	Fixed	5.125%	2/1/2044		88,831
	444,816	Loan ID 200570	Fixed	3.625%	6/1/2043		402,180
	141,235	Loan ID 200571	Fixed	4.500%	7/1/2043		126,070
	171,667	Loan ID 200572	Fixed	4.375%	3/1/2044		155,039
	100,459	Loan ID 200573	Fixed	3.750%	9/1/2042		75,130
	134,559	Loan ID 200574	Fixed	4.875%	1/1/2044		123,593
	136,420	Loan ID 200575	Fixed	4.125%	5/1/2042		107,630
	345,631	Loan ID 200576	Fixed	3.750%	6/1/2042		266,675
	239,432	Loan ID 200577	Fixed	3.125%	4/1/2028		213,828
	190,455	Loan ID 200578	Fixed	4.750%	8/1/2040		176,933
	50,625	Loan ID 200579	Fixed	4.875%	5/1/2042		40,207
	184,078	Loan ID 200580	Fixed	4.125%	11/1/2041		158,335
	40,013	Loan ID 200581	Fixed	4.750%	9/1/2042		33,756
	388,038	Loan ID 200582	Fixed	4.000%	11/1/2042		322,764
	96,928	Loan ID 200583	Fixed	3.625%	9/1/2027		86,511
	364,045	Loan ID 200584	Fixed	3.375%	4/1/2043		311,318

The accompanying notes are an integral part of these financial statements.

13

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	162,322	Loan ID 200585	Fixed	4.000%	5/1/2042	$	139,262
	341,492	Loan ID 200586	Fixed	3.500%	1/1/2043		312,038
	692,512	Loan ID 200587	Fixed	4.750%	10/1/2040		632,212
	262,753	Loan ID 200588	Fixed	3.750%	5/1/2042		244,411
	403,400	Loan ID 200589	ARM	3.375%	12/1/2043		363,660
	62,862	Loan ID 200590	Fixed	4.125%	7/1/2042		53,136
	106,530	Loan ID 200591	Fixed	4.875%	3/1/2043		97,088
	102,218	Loan ID 200592	Fixed	4.375%	6/1/2042		88,396
	70,368	Loan ID 200593	Fixed	3.875%	6/1/2042		59,813
	236,104	Loan ID 200594	Fixed	4.250%	4/1/2043		216,069
	115,492	Loan ID 200595	Fixed	4.250%	5/1/2042		98,056
	98,373	Loan ID 200596	Fixed	4.875%	10/1/2043		89,983
	41,314	Loan ID 200597	Fixed	5.625%	2/1/2044		34,156
	140,443	Loan ID 200598	Fixed	4.625%	2/1/2044		125,800
	124,943	Loan ID 200599	Fixed	4.125%	2/1/2043		107,163
	206,981	Loan ID 200600	Fixed	4.625%	4/1/2044		187,585
	113,214	Loan ID 200601	Fixed	4.000%	3/1/2043		98,315
	192,203	Loan ID 200602	Fixed	3.750%	3/1/2043		161,622
	75,174	Loan ID 200603	Fixed	4.125%	6/1/2043		62,828
	76,623	Loan ID 200604	Fixed	3.500%	1/1/2043		64,363
	144,937	Loan ID 200605	Fixed	4.875%	11/1/2043		123,771
	133,700	Loan ID 200606	Fixed	3.625%	12/1/2042		114,766
	245,692	Loan ID 200607	Fixed	2.875%	11/1/2027		205,602
	140,825	Loan ID 200608	Fixed	4.125%	11/1/2043		120,341
	139,639	Loan ID 200609	Fixed	4.500%	3/1/2044		124,248
	274,998	Loan ID 200610	ARM	2.875%	3/1/2043		234,518
	63,461	Loan ID 200611	Fixed	4.625%	5/1/2043		53,454
	130,544	Loan ID 200612	Fixed	4.500%	2/1/2043		118,241
	214,122	Loan ID 200613	Fixed	3.369%	1/1/2043		189,325
	106,951	Loan ID 200614	Fixed	5.000%	1/1/2044		93,762
	105,727	Loan ID 200615	Fixed	4.250%	8/1/2043		94,888
	350,569	Loan ID 200616	Fixed	4.875%	2/1/2044		312,946
	93,744	Loan ID 200617	Fixed	4.750%	9/1/2043		68,597
	134,000	Loan ID 200618	Fixed	4.375%	5/1/2042		111,939
	238,217	Loan ID 200620	Fixed	4.250%	10/1/2043		190,812
	137,743	Loan ID 200621	Fixed	3.625%	1/1/2043		125,898
	306,361	Loan ID 200622	Fixed	4.750%	12/1/2043		275,122
	76,728	Loan ID 200623	Fixed	4.375%	12/1/2042		66,022
	264,225	Loan ID 200624	Fixed	4.125%	4/1/2043		234,186
	121,293	Loan ID 200625	Fixed	4.500%	11/1/2043		100,151
	121,339	Loan ID 200626	Fixed	4.500%	10/1/2043		102,830
	136,947	Loan ID 200627	Fixed	4.250%	10/1/2043		121,992
	89,919	Loan ID 200628	Fixed	3.250%	2/1/2028		79,916
	161,286	Loan ID 200629	Fixed	4.375%	9/1/2043		137,338

The accompanying notes are an integral part of these financial statements.

14

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	170,853	Loan ID 200630	Fixed	5.250%	9/1/2043	$	155,446
	303,619	Loan ID 200631	Fixed	3.250%	6/1/2043		268,568
	353,843	Loan ID 200632	Fixed	5.250%	5/1/2044		325,643
	231,485	Loan ID 200633	Fixed	5.125%	5/1/2044		213,387
	240,488	Loan ID 200634	Fixed	4.375%	1/1/2044		211,219
	115,063	Loan ID 200635	Fixed	3.750%	5/1/2029		103,039
	199,918	Loan ID 200636	Fixed	3.750%	2/1/2053		173,517
	186,368	Loan ID 200637	Fixed	5.375%	4/1/2040		144,095
	195,060	Loan ID 200638	Fixed	3.875%	3/1/2043		166,271
	251,798	Loan ID 200639	ARM	4.250%	5/1/2044		214,636
	151,649	Loan ID 200640	Fixed	5.125%	3/1/2044		137,504
	176,850	Loan ID 200641	Fixed	5.250%	4/1/2044		158,816
	149,659	Loan ID 200642	Fixed	5.000%	3/1/2044		127,184
	173,910	Loan ID 200644	Fixed	4.750%	3/1/2044		154,539
	121,573	Loan ID 200645	Fixed	5.000%	4/1/2044		112,190
	352,000	Loan ID 200646	ARM	2.625%	3/1/2043		293,570
	122,278	Loan ID 200647	Fixed	4.250%	1/1/2044		110,669
	158,727	Loan ID 200648	Fixed	4.750%	3/1/2044		144,794
	147,836	Loan ID 200649	Fixed	4.375%	3/1/2044		132,038
	133,611	Loan ID 200650	Fixed	4.875%	5/1/2044		118,891
	274,708	Loan ID 200651	Fixed	3.625%	7/1/2043		239,386
	174,547	Loan ID 200652	Fixed	4.125%	5/1/2038		98,533
	361,462	Loan ID 200653	Fixed	4.000%	4/1/2053		256,620
	285,899	Loan ID 200654	Fixed	5.125%	2/1/2041		232,257
	146,353	Loan ID 200655	Fixed	3.375%	5/1/2043		125,232
	160,270	Loan ID 200656	Fixed	6.875%	7/1/2037		103,097
	148,419	Loan ID 200657	Fixed	4.875%	8/1/2051		127,861
	348,525	Loan ID 200658	Fixed	2.000%	1/1/2044		190,604
	213,782	Loan ID 200659	Fixed	4.000%	3/1/2053		189,504
	189,723	Loan ID 200660	Fixed	5.875%	3/1/2038		148,809
	390,445	Loan ID 200661	Fixed	4.000%	2/1/2043		339,941
	218,264	Loan ID 200662	Fixed	5.000%	3/1/2044		197,519
	71,152	Loan ID 200663	Fixed	4.750%	5/1/2044		64,011
	284,674	Loan ID 200664	Fixed	4.750%	4/1/2044		259,324
	272,778	Loan ID 200665	Fixed	4.299%	12/1/2046		152,644
	222,382	Loan ID 200666	Fixed	5.890%	8/26/2035		111,858
	230,568	Loan ID 200667	Fixed	4.625%	6/1/2044		206,446
	314,494	Loan ID 200668	Fixed	3.625%	4/1/2043		271,263
	160,082	Loan ID 200669	Fixed	5.250%	4/1/2044		146,149
	69,954	Loan ID 200670	Fixed	4.375%	2/1/2029		55,915
	245,527	Loan ID 200671	Fixed	4.625%	8/1/2043		216,222
	164,456	Loan ID 200672	Fixed	3.750%	7/1/2043		139,039
	142,306	Loan ID 200673	Fixed	4.625%	5/1/2044		121,258
	319,551	Loan ID 200674	Fixed	4.500%	5/1/2044		270,244

The accompanying notes are an integral part of these financial statements.

15

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	325,142	Loan ID 200675	Fixed	5.125%	4/1/2044	$	291,339
	99,812	Loan ID 200676	Fixed	3.750%	6/1/2043		79,998
	136,942	Loan ID 200677	Fixed	3.625%	5/1/2028		121,755
	481,612	Loan ID 200678	Fixed	4.375%	2/1/2044		435,239
	262,566	Loan ID 200679	Fixed	5.000%	4/1/2044		207,155
	65,549	Loan ID 200680	Fixed	5.375%	3/1/2044		50,596
	196,447	Loan ID 200682	Fixed	4.875%	5/1/2044		165,585
	220,260	Loan ID 200683	Fixed	4.500%	4/1/2044		198,914
	130,346	Loan ID 200684	Fixed	4.875%	4/1/2044		117,355
	237,301	Loan ID 200685	Fixed	4.875%	5/1/2044		203,085
	44,505	Loan ID 200686	Fixed	5.000%	5/1/2044		37,536
	59,208	Loan ID 200687	Fixed	5.125%	5/1/2044		46,848
	153,836	Loan ID 200688	Fixed	4.250%	3/1/2053		105,104
	139,258	Loan ID 200689	Fixed	4.375%	12/1/2043		103,054
	234,524	Loan ID 200690	Fixed	4.250%	4/1/2044		208,359
	297,805	Loan ID 200691	Fixed	4.500%	5/1/2044		254,259
	252,070	Loan ID 200692	Fixed	4.625%	7/1/2044		223,639
	184,150	Loan ID 200693	Fixed	3.250%	4/1/2043		146,751
	110,760	Loan ID 200694	Fixed	4.500%	9/1/2043		87,648
	140,021	Loan ID 200695	Fixed	5.000%	12/1/2043		113,600
	50,779	Loan ID 200696	Fixed	3.750%	10/1/2042		42,610
	140,504	Loan ID 200697	Fixed	4.500%	1/1/2044		111,762
	107,825	Loan ID 200698	Fixed	3.875%	7/1/2042		80,446
	191,962	Loan ID 200699	Fixed	4.125%	7/1/2044		166,315
	100,257	Loan ID 200700	Fixed	4.250%	2/1/2044		85,709
	173,468	Loan ID 200701	Fixed	4.750%	6/1/2044		146,671
	158,159	Loan ID 200702	Fixed	4.750%	5/1/2044		135,402
	202,905	Loan ID 200703	Fixed	3.875%	6/1/2043		174,104
	100,633	Loan ID 200704	Fixed	4.375%	3/1/2043		89,323
	138,770	Loan ID 200705	Fixed	4.625%	4/1/2044		120,944
	106,085	Loan ID 200706	Fixed	4.990%	6/1/2044		94,687
	103,416	Loan ID 200707	Fixed	4.875%	2/1/2044		92,317
	137,697	Loan ID 200708	Fixed	4.875%	2/1/2044		122,396
	53,186	Loan ID 200709	Fixed	4.375%	4/1/2043		45,370
	119,688	Loan ID 200710	Fixed	4.500%	7/1/2044		106,280
	121,100	Loan ID 200711	Fixed	3.750%	7/1/2043		96,862
	225,861	Loan ID 200712	Fixed	3.875%	2/1/2044		197,093
	101,801	Loan ID 200713	Fixed	4.250%	12/1/2043		90,678
	625,191	Loan ID 200714	Fixed	2.175%	11/1/2036		493,285
	200,730	Loan ID 200715	ARM	2.750%	9/1/2035		158,474
	210,969	Loan ID 200716	ARM	3.200%	8/1/2037		147,836
	160,019	Loan ID 200717	ARM	2.625%	1/1/2035		118,909
	196,215	Loan ID 200718	ARM	4.500%	5/1/2036		132,394
	500,000	Loan ID 200719	ARM	2.625%	6/1/2037		394,069

The accompanying notes are an integral part of these financial statements.

16

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	148,022	Loan ID 200720	ARM	3.125%	4/1/2042	$	126,337
	188,598	Loan ID 200721	Fixed	3.000%	8/1/2037		133,332
	208,591	Loan ID 200722	ARM	2.750%	5/1/2037		159,093
	252,790	Loan ID 200723	ARM	2.750%	7/1/2037		213,018
	310,000	Loan ID 200724	ARM	2.750%	5/1/2037		263,162
	192,550	Loan ID 200725	Fixed	7.000%	7/1/2037		158,258
	152,051	Loan ID 200726	Fixed	4.125%	9/1/2037		95,624
	183,608	Loan ID 200727	Fixed	2.625%	7/1/2037		155,922
	267,039	Loan ID 200728	ARM	2.625%	5/1/2037		167,923
	355,565	Loan ID 200729	ARM	3.375%	11/1/2037		239,575
	446,693	Loan ID 200730	ARM	2.625%	9/1/2036		376,976
	195,520	Loan ID 200731	ARM	2.950%	6/1/2037		138,015
	205,959	Loan ID 200732	Fixed	3.125%	9/1/2027		180,022
	241,651	Loan ID 200733	Fixed	3.750%	12/1/2042		214,162
	253,370	Loan ID 200734	ARM	3.375%	4/1/2044		215,376
	105,895	Loan ID 200735	Fixed	4.500%	6/1/2044		95,539
	149,470	Loan ID 200736	Fixed	4.750%	5/1/2044		119,757
	147,583	Loan ID 200737	Fixed	4.750%	5/1/2044		87,697
	610,458	Loan ID 200738	Fixed	4.125%	6/1/2044		555,133
	365,254	Loan ID 200739	Fixed	4.625%	8/1/2044		315,601
	136,083	Loan ID 200740	Fixed	4.875%	6/1/2044		116,369
	111,376	Loan ID 200741	Fixed	4.250%	6/1/2044		94,348
	184,304	Loan ID 200742	Fixed	4.250%	4/1/2043		153,802
	319,649	Loan ID 200743	Fixed	4.990%	7/1/2044		293,979
	200,774	Loan ID 200744	Fixed	3.625%	6/1/2043		171,710
	128,617	Loan ID 200745	Fixed	3.250%	6/1/2043		108,835
	381,677	Loan ID 200746	Fixed	5.250%	6/1/2044		313,454
	346,191	Loan ID 200747	Fixed	4.125%	5/1/2043		298,736
	467,326	Loan ID 200748	Fixed	4.750%	12/1/2043		431,872
	159,531	Loan ID 200749	Fixed	4.750%	9/1/2043		145,048
	253,019	Loan ID 200750	Fixed	4.750%	5/1/2044		233,217
	174,024	Loan ID 200751	Fixed	3.750%	7/1/2029		159,130
	172,380	Loan ID 200752	Fixed	4.750%	10/1/2043		145,438
	62,010	Loan ID 200753	Fixed	5.250%	5/1/2044		49,317
	231,819	Loan ID 200754	Fixed	4.750%	8/1/2044		214,351
	59,012	Loan ID 200755	Fixed	4.250%	6/1/2043		46,984
	197,052	Loan ID 200756	Fixed	4.875%	11/1/2043		172,405
	159,832	Loan ID 200757	Fixed	4.250%	7/1/2044		145,887
	309,153	Loan ID 200758	Fixed	3.000%	2/1/2052		245,217
	133,003	Loan ID 200759	Fixed	3.750%	6/1/2043		117,894
	182,748	Loan ID 200760	Fixed	3.750%	6/1/2043		161,610
	112,843	Loan ID 200761	Fixed	4.625%	1/1/2044		87,162
	315,661	Loan ID 200762	Fixed	3.875%	5/1/2042		286,772
	160,472	Loan ID 200763	Fixed	4.250%	11/1/2043		146,850

The accompanying notes are an integral part of these financial statements.

17

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	322,432	Loan ID 200764	Fixed	3.875%	6/1/2043	$	278,715
	212,870	Loan ID 200765	Fixed	4.875%	11/1/2043		183,449
	518,401	Loan ID 200766	Fixed	3.625%	12/1/2042		464,025
	422,865	Loan ID 200767	Fixed	5.000%	6/1/2042		381,938
	525,787	Loan ID 200768	Fixed	4.000%	6/1/2043		465,895
	142,464	Loan ID 200770	Fixed	4.000%	5/1/2043		127,523
	183,042	Loan ID 200771	Fixed	4.500%	4/1/2043		148,679
	259,145	Loan ID 200772	Fixed	3.750%	3/1/2043		231,896
	60,666	Loan ID 200773	Fixed	3.750%	10/1/2043		40,413
	215,347	Loan ID 200774	Fixed	3.875%	7/1/2043		188,502
	46,419	Loan ID 200775	Fixed	4.250%	4/1/2043		41,164
	84,938	Loan ID 200776	Fixed	4.250%	3/1/2044		72,264
	55,563	Loan ID 200777	Fixed	4.750%	6/1/2044		46,980
	110,930	Loan ID 200778	Fixed	4.625%	6/1/2044		103,101
	148,271	Loan ID 200779	Fixed	4.625%	8/1/2044		134,863
	38,937	Loan ID 200780	Fixed	4.250%	8/1/2044		33,128
	173,635	Loan ID 200781	Fixed	4.625%	9/1/2044		157,975
	145,387	Loan ID 200783	Fixed	4.750%	9/1/2044		132,504
	413,444	Loan ID 200784	Fixed	4.125%	9/1/2044		373,141
	119,041	Loan ID 200785	Fixed	4.500%	8/1/2044		108,522
	235,743	Loan ID 200786	Fixed	4.625%	7/1/2044		213,115
	44,734	Loan ID 200787	Fixed	4.750%	9/1/2044		36,313
	211,587	Loan ID 200788	Fixed	3.625%	12/1/2028		186,282
	136,253	Loan ID 200789	Fixed	3.750%	9/1/2044		119,384
	157,327	Loan ID 200790	Fixed	4.250%	8/1/2044		141,438
	210,578	Loan ID 200791	Fixed	4.875%	6/1/2044		191,979
	378,288	Loan ID 200792	Fixed	3.375%	1/1/2043		290,427
	377,387	Loan ID 200793	Fixed	2.000%	10/1/2051		300,327
	235,009	Loan ID 200794	Fixed	2.000%	4/1/2050		186,882
	98,253	Loan ID 200795	Fixed	6.750%	8/1/2036		64,685
	73,841	Loan ID 200796	Fixed	2.170%	12/1/2053		47,219
	431,762	Loan ID 200797	Fixed	2.000%	6/1/2052		276,069
	62,230	Loan ID 200799	Fixed	3.000%	2/5/2053		52,185
	62,803	Loan ID 200800	Fixed	4.000%	1/1/2053		44,183
	115,348	Loan ID 200801	Fixed	2.000%	7/1/2037		74,595
	217,318	Loan ID 200802	Fixed	5.000%	1/1/2042		139,438
	367,270	Loan ID 200803	Fixed	2.250%	11/1/2050		349,931
	76,745	Loan ID 200804	Fixed	2.000%	6/1/2050		61,301
	163,572	Loan ID 200805	Fixed	2.000%	7/1/2050		137,598
	160,219	Loan ID 200806	Fixed	5.000%	8/1/2049		100,219
	304,041	Loan ID 200807	Fixed	2.460%	7/1/2047		250,637
	65,687	Loan ID 200808	Fixed	2.000%	11/1/2050		35,528
	118,716	Loan ID 200809	Fixed	2.000%	4/1/2050		98,290
	145,816	Loan ID 200810	Fixed	3.000%	1/1/2050		127,901

The accompanying notes are an integral part of these financial statements.

18

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	119,156	Loan ID 200811	Fixed	2.000%	4/1/2050	$	66,661
	146,209	Loan ID 200812	Fixed	4.000%	4/1/2042		99,883
	281,126	Loan ID 200813	Fixed	2.000%	12/1/2049		229,927
	247,705	Loan ID 200814	Fixed	8.250%	7/1/2039		204,541
	319,070	Loan ID 200815	Fixed	2.000%	3/1/2053		263,482
	86,021	Loan ID 200816	Fixed	2.000%	11/1/2050		70,666
	292,294	Loan ID 200817	Fixed	2.000%	1/1/2050		239,062
	56,002	Loan ID 200818	Fixed	3.490%	8/1/2051		37,609
	268,274	Loan ID 200819	Fixed	2.000%	9/1/2053		140,217
	142,286	Loan ID 200820	Fixed	4.000%	7/1/2044		118,326
	217,174	Loan ID 200821	Fixed	4.250%	8/1/2044		192,537
	331,360	Loan ID 200822	Fixed	4.750%	1/1/2042		287,650
	84,870	Loan ID 200823	Fixed	4.250%	9/1/2044		68,348
	230,561	Loan ID 200824	Fixed	4.250%	8/1/2044		197,722
	153,423	Loan ID 200825	Fixed	4.500%	10/1/2044		133,352
	110,247	Loan ID 200826	Fixed	4.375%	9/1/2044		99,102
	195,300	Loan ID 200827	Fixed	3.875%	6/1/2044		170,103
	244,099	Loan ID 200828	Fixed	4.375%	7/1/2044		209,803
	269,165	Loan ID 200829	Fixed	4.375%	7/1/2043		246,074
	221,062	Loan ID 200830	Fixed	2.875%	7/1/2044		187,144
	91,850	Loan ID 200831	Fixed	4.250%	10/1/2044		82,618
	354,899	Loan ID 200832	Fixed	4.250%	10/1/2044		317,166
	371,707	Loan ID 200833	Fixed	4.250%	1/1/2043		338,218
	167,250	Loan ID 200834	Fixed	4.125%	7/1/2043		149,681
	342,109	Loan ID 200835	Fixed	5.000%	8/1/2043		300,970
	766,644	Loan ID 200836	Fixed	4.250%	9/1/2044		702,998
	344,825	Loan ID 200837	Fixed	4.625%	8/1/2044		315,182
	191,190	Loan ID 200838	Fixed	3.750%	8/1/2044		167,581
	244,697	Loan ID 200839	Fixed	5.000%	5/1/2044		223,148
	330,969	Loan ID 200840	Fixed	3.750%	7/1/2044		279,972
	133,684	Loan ID 200841	Fixed	4.250%	7/1/2044		113,061
	189,802	Loan ID 200842	Fixed	4.250%	8/1/2044		168,138
	372,119	Loan ID 200843	Fixed	4.750%	10/1/2043		341,050
	317,075	Loan ID 200844	Fixed	4.500%	7/1/2043		286,867
	256,396	Loan ID 200845	Fixed	4.125%	6/1/2032		175,018
	212,503	Loan ID 200846	Fixed	4.375%	11/1/2043		163,520
	188,560	Loan ID 200847	Fixed	4.750%	10/1/2044		171,535
	184,564	Loan ID 200848	Fixed	2.000%	6/1/2051		135,138
	227,809	Loan ID 200849	Fixed	5.014%	11/1/2047		141,920
	149,852	Loan ID 200850	Fixed	2.000%	6/1/2051		79,535
	190,968	Loan ID 200851	Fixed	4.000%	7/1/2051		139,873
	636,955	Loan ID 200852	Fixed	2.868%	2/1/2053		469,436
	119,414	Loan ID 200853	Fixed	2.818%	4/1/2037		86,616
	108,653	Loan ID 200854	Fixed	2.500%	4/1/2053		87,878

The accompanying notes are an integral part of these financial statements.

19

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	225,171	Loan ID 200855	ARM	3.450%	7/1/2037	$	166,032
	223,336	Loan ID 200856	Fixed	4.000%	6/1/2042		121,395
	245,847	Loan ID 200857	Fixed	2.125%	7/1/2040		167,119
	276,938	Loan ID 200858	Fixed	2.000%	1/1/2053		203,228
	249,811	Loan ID 200859	Fixed	2.170%	12/1/2052		157,009
	173,248	Loan ID 200860	Fixed	2.000%	3/1/2052		92,423
	442,532	Loan ID 200861	Fixed	2.000%	6/1/2054		363,598
	160,222	Loan ID 200862	Fixed	2.748%	8/1/2050		118,012
	261,143	Loan ID 200863	Fixed	2.000%	7/1/2052		214,150
	279,625	Loan ID 200864	Fixed	2.000%	1/1/2037		177,894
	215,920	Loan ID 200865	Fixed	3.060%	11/1/2053		158,593
	278,208	Loan ID 200866	Fixed	2.000%	5/1/2053		229,324
	117,456	Loan ID 200867	Fixed	2.370%	9/1/2053		85,916
	317,737	Loan ID 200869	ARM	3.620%	4/1/2037		211,223
	2,770,505	Loan ID 200871	Fixed	2.000%	8/1/2053		1,996,797
	400,721	Loan ID 200872	Fixed	3.200%	8/1/2050		292,959
	205,100	Loan ID 200873	Fixed	3.525%	11/1/2053		151,035
	216,152	Loan ID 200874	Fixed	2.000%	11/1/2047		151,327
	588,615	Loan ID 200875	Fixed	2.000%	5/1/2054		426,247
	205,915	Loan ID 200876	Fixed	2.625%	5/1/2035		172,725
	407,223	Loan ID 200877	Fixed	4.750%	9/1/2042		299,352
	141,402	Loan ID 200878	Fixed	2.000%	7/1/2050		102,293
	524,463	Loan ID 200879	Fixed	2.375%	3/1/2036		409,925
	199,042	Loan ID 200880	Fixed	4.250%	6/1/2043		169,268
	302,729	Loan ID 200881	Fixed	4.875%	8/1/2040		204,016
	187,401	Loan ID 200882	Fixed	5.125%	9/1/2043		169,411
	95,236	Loan ID 200883	Fixed	3.375%	5/1/2028		84,497
	98,000	Loan ID 200884	ARM	3.125%	3/1/2043		83,517
	179,706	Loan ID 200885	Fixed	4.875%	10/1/2044		156,689
	101,349	Loan ID 200886	Fixed	4.250%	10/1/2044		89,218
	261,357	Loan ID 200887	Fixed	4.750%	9/1/2044		236,212
	249,060	Loan ID 200888	Fixed	4.500%	9/1/2044		212,005
	143,237	Loan ID 200889	Fixed	4.500%	10/1/2044		129,353
	139,674	Loan ID 200890	Fixed	4.375%	11/1/2044		117,675
	215,366	Loan ID 200891	Fixed	4.250%	10/1/2044		181,181
	266,507	Loan ID 200892	Fixed	3.750%	9/1/2043		230,362
	231,246	Loan ID 200893	Fixed	5.000%	11/1/2043		202,588
	103,266	Loan ID 200894	Fixed	5.000%	10/1/2043		91,202
	235,671	Loan ID 200895	Fixed	3.875%	11/1/2043		201,699
	67,182	Loan ID 200896	Fixed	4.750%	10/1/2043		36,215
	201,816	Loan ID 200897	Fixed	4.750%	10/1/2044		164,928
	229,342	Loan ID 200898	Fixed	4.250%	10/1/2043		133,380
	120,307	Loan ID 200899	Fixed	4.625%	1/1/2044		64,969
	390,980	Loan ID 200900	Fixed	4.375%	9/1/2044		333,847

The accompanying notes are an integral part of these financial statements.

20

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	222,264	Loan ID 200901	Fixed	4.250%	4/1/2044	$	187,653
	686,673	Loan ID 200902	Fixed	4.250%	9/1/2044		621,838
	336,089	Loan ID 200903	Fixed	4.750%	5/1/2044		303,971
	259,580	Loan ID 200904	Fixed	5.125%	9/1/2044		224,365
	414,643	Loan ID 200905	Fixed	5.375%	9/1/2044		368,002
	333,071	Loan ID 200906	Fixed	4.000%	2/1/2035		289,736
	355,586	Loan ID 200907	ARM	3.250%	8/1/2047		270,699
	109,066	Loan ID 200908	Fixed	4.000%	6/1/2049		92,265
	119,074	Loan ID 200909	Fixed	4.870%	3/1/2046		104,410
	210,755	Loan ID 200910	Fixed	3.300%	4/1/2053		167,269
	150,729	Loan ID 200911	Fixed	3.380%	9/1/2053		127,070
	723,314	Loan ID 200912	Fixed	3.500%	3/1/2037		658,845
	61,582	Loan ID 200913	Fixed	4.250%	5/1/2047		44,917
	157,876	Loan ID 200914	Fixed	2.875%	12/1/2047		133,696
	145,054	Loan ID 200915	Fixed	2.990%	9/1/2053		110,602
	94,785	Loan ID 200916	Fixed	4.000%	10/1/2037		78,932
	164,146	Loan ID 200917	Fixed	4.875%	1/1/2051		141,837
	525,848	Loan ID 200918	Fixed	3.875%	10/1/2035		394,794
	571,603	Loan ID 200919	Fixed	3.000%	8/1/2045		479,275
	135,132	Loan ID 200920	Fixed	3.875%	8/1/2048		98,743
	101,779	Loan ID 200921	ARM	3.125%	7/1/2051		84,509
	436,257	Loan ID 200922	Fixed	3.340%	9/1/2053		365,315
	459,648	Loan ID 200923	Fixed	2.750%	12/1/2036		380,872
	522,742	Loan ID 200924	Fixed	4.000%	9/1/2051		465,205
	464,083	Loan ID 200925	Fixed	4.000%	9/1/2051		413,243
	253,628	Loan ID 200926	ARM	3.375%	4/1/2047		199,515
	352,157	Loan ID 200927	Fixed	3.000%	8/1/2038		298,979
	130,462	Loan ID 200928	Fixed	4.800%	12/1/2036		112,056
	169,299	Loan ID 200929	Fixed	4.625%	1/1/2043		149,278
	191,717	Loan ID 200930	Fixed	2.000%	12/1/2050		168,699
	317,661	Loan ID 200931	Fixed	4.250%	12/1/2052		279,483
	191,767	Loan ID 200932	Fixed	3.500%	5/1/2043		139,222
	318,270	Loan ID 200933	Fixed	4.250%	3/1/2043		282,955
	120,885	Loan ID 200934	Fixed	3.810%	1/1/2043		97,196
	187,713	Loan ID 200935	Fixed	3.875%	4/1/2043		157,930
	206,262	Loan ID 200936	Fixed	4.000%	5/1/2042		173,002
	108,783	Loan ID 200937	Fixed	5.500%	5/1/2041		90,527
	182,172	Loan ID 200938	Fixed	4.125%	4/1/2043		152,378
	128,421	Loan ID 200939	Fixed	4.170%	5/1/2042		107,849
	210,981	Loan ID 200940	Fixed	3.250%	2/1/2043		176,838
	122,948	Loan ID 200941	Fixed	3.780%	1/1/2043		104,779
	294,019	Loan ID 200942	Fixed	4.000%	4/1/2043		253,011
	125,293	Loan ID 200943	Fixed	4.875%	11/1/2043		110,318
	109,564	Loan ID 200944	Fixed	4.500%	2/1/2044		96,719

The accompanying notes are an integral part of these financial statements.

21

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	147,118	Loan ID 200945	Fixed	5.125%	4/1/2044	$	126,848
	591,555	Loan ID 200946	Fixed	5.125%	5/1/2044		529,159
	303,679	Loan ID 200947	Fixed	4.000%	2/1/2043		261,600
	135,203	Loan ID 200948	Fixed	4.625%	12/1/2042		118,679
	296,581	Loan ID 200949	Fixed	3.875%	4/1/2043		263,193
	111,263	Loan ID 200950	Fixed	4.750%	12/1/2042		96,884
	330,976	Loan ID 200951	Fixed	2.375%	7/1/2038		257,148
	191,861	Loan ID 200952	Fixed	3.875%	1/1/2043		160,351
	124,587	Loan ID 200953	Fixed	3.750%	12/1/2042		106,181
	400,353	Loan ID 200954	Fixed	3.625%	1/1/2043		342,492
	351,446	Loan ID 200955	Fixed	3.250%	5/1/2043		300,132
	270,282	Loan ID 200956	Fixed	5.000%	8/1/2051		223,513
	176,456	Loan ID 200957	Fixed	3.875%	6/1/2043		151,546
	101,730	Loan ID 200958	Fixed	3.875%	6/1/2043		86,386
	441,811	Loan ID 200959	Fixed	4.000%	11/1/2042		380,810
	397,826	Loan ID 200960	Fixed	3.500%	1/1/2043		334,176
	188,135	Loan ID 200961	Fixed	4.750%	6/1/2043		165,123
	219,674	Loan ID 200962	Fixed	4.250%	10/1/2044		186,978
	123,663	Loan ID 200963	Fixed	4.750%	9/1/2044		106,409
	372,895	Loan ID 200964	Fixed	3.750%	7/1/2043		319,701
	216,161	Loan ID 200965	Fixed	4.125%	11/1/2044		178,969
	153,009	Loan ID 200966	Fixed	4.875%	7/1/2044		128,284
	74,194	Loan ID 200967	Fixed	5.125%	5/1/2044		57,328
	99,324	Loan ID 200968	Fixed	4.250%	11/1/2044		72,446
	379,110	Loan ID 200969	Fixed	4.875%	8/1/2043		339,111
	52,649	Loan ID 200970	Fixed	4.375%	8/1/2043		43,544
	188,728	Loan ID 200971	Fixed	4.000%	1/1/2044		137,413
	139,113	Loan ID 200972	Fixed	4.750%	2/1/2044		123,141
	142,699	Loan ID 200973	Fixed	4.500%	6/1/2044		122,425
	161,102	Loan ID 200974	Fixed	4.250%	10/1/2044		139,421
	59,774	Loan ID 200975	Fixed	4.750%	12/1/2044		52,433
	209,446	Loan ID 200976	Fixed	4.500%	12/1/2044		178,400
	366,713	Loan ID 200977	Fixed	4.875%	9/1/2044		321,324
	126,308	Loan ID 200978	Fixed	4.625%	11/1/2044		109,326
	113,077	Loan ID 200979	Fixed	4.375%	11/1/2044		99,352
	185,715	Loan ID 200980	Fixed	4.250%	11/1/2044		161,909
	322,744	Loan ID 200981	Fixed	4.625%	11/1/2044		287,286
	149,392	Loan ID 200982	Fixed	4.375%	11/1/2044		93,331
	233,207	Loan ID 200983	Fixed	4.375%	8/1/2044		197,906
	160,430	Loan ID 200984	Fixed	5.000%	10/1/2043		138,310
	271,979	Loan ID 200985	Fixed	4.250%	12/1/2044		238,846
	161,036	Loan ID 200986	Fixed	4.250%	12/1/2044		141,179
	119,379	Loan ID 200987	Fixed	4.625%	10/1/2044		101,915
	232,362	Loan ID 200988	Fixed	4.875%	2/1/2044		202,607

The accompanying notes are an integral part of these financial statements.

22

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	241,215	Loan ID 200989	Fixed	3.750%	6/1/2029	$	192,255
	658,649	Loan ID 200990	Fixed	4.750%	10/1/2044		585,407
	139,629	Loan ID 200991	Fixed	4.500%	5/1/2044		92,123
	299,536	Loan ID 200992	Fixed	4.125%	5/1/2043		257,715
	178,065	Loan ID 200993	Fixed	2.004%	7/15/2049		125,792
	208,454	Loan ID 200994	Fixed	4.125%	5/1/2053		174,418
	204,387	Loan ID 200995	Fixed	2.750%	5/1/2047		160,305
	59,543	Loan ID 200996	Fixed	2.500%	8/1/2048		38,957
	102,724	Loan ID 200997	Fixed	2.000%	3/1/2051		77,479
	376,645	Loan ID 200998	Fixed	2.250%	12/1/2050		285,293
	102,837	Loan ID 200999	Fixed	4.250%	4/1/2044		82,011
	77,671	Loan ID 201000	Fixed	5.125%	2/1/2039		69,451
	105,199	Loan ID 201001	Fixed	7.413%	9/1/2037		93,999
	39,880	Loan ID 201002	Fixed	0.000%	10/1/2024		34,564
	40,568	Loan ID 201003	Fixed	0.000%	12/1/2024		35,160
	137,981	Loan ID 201005	Fixed	4.750%	7/1/2041		120,267
	45,521	Loan ID 201006	Fixed	6.875%	3/1/2038		39,355
	83,521	Loan ID 201007	Fixed	7.125%	4/1/2037		72,007
	81,200	Loan ID 201008	Fixed	7.125%	10/1/2038		73,267
	79,877	Loan ID 201009	Fixed	0.000%	4/1/2033		69,332
	85,154	Loan ID 201010	Fixed	5.500%	4/1/2039		76,043
	55,282	Loan ID 201011	Fixed	0.000%	2/1/2023		48,065
	48,383	Loan ID 201012	Fixed	7.500%	12/1/2038		43,359
	58,805	Loan ID 201013	Fixed	7.500%	12/1/2038		52,699
	103,977	Loan ID 201014	Fixed	0.000%	2/1/2033		90,185
	23,385	Loan ID 201015	Fixed	0.000%	3/29/2021		20,244
	109,779	Loan ID 201016	Fixed	6.500%	2/1/2036		95,186
	31,693	Loan ID 201017	Fixed	0.000%	4/1/2032		27,469
	319,355	Loan ID 201018	Fixed	6.750%	6/1/2037		287,147
	106,410	Loan ID 201019	ARM	2.875%	2/1/2037		87,727
	108,179	Loan ID 201020	Fixed	0.000%	10/1/2034		93,775
	104,205	Loan ID 201021	Fixed	6.870%	8/1/2047		93,450
	85,762	Loan ID 201022	ARM	2.625%	5/1/2037		74,362
	151,023	Loan ID 201023	Fixed	6.450%	2/1/2036		100,948
	101,870	Loan ID 201024	Fixed	9.000%	1/1/2033		89,485
	196,852	Loan ID 201025	ARM	2.875%	1/1/2042		169,112
	84,943	Loan ID 201026	Fixed	7.750%	12/1/2035		64,120
	108,672	Loan ID 201027	Fixed	9.538%	3/1/2037		96,380
	176,999	Loan ID 201028	Fixed	4.625%	4/1/2044		148,543
	360,816	Loan ID 201029	Fixed	4.125%	3/1/2044		287,583
	108,410	Loan ID 201030	Fixed	5.000%	7/1/2042		88,967
	198,916	Loan ID 201031	Fixed	4.375%	12/1/2044		169,207
	147,713	Loan ID 201032	Fixed	4.500%	11/1/2044		116,366
	299,873	Loan ID 201033	Fixed	4.125%	12/1/2044		262,666

The accompanying notes are an integral part of these financial statements.

23

Vertical Capital Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)

March 31, 2015

Principal			Loan Type	Interest Rate	Maturity	Value
		MORTGAGE NOTES (Continued) - 104.4%
$	67,630	Loan ID 201034	Fixed	4.625%	1/1/2045	$	49,349
	107,448	Loan ID 201035	Fixed	4.375%	9/1/2044		70,600
	102,659	Loan ID 201036	Fixed	4.375%	12/1/2044		85,668
	71,575	Loan ID 201037	Fixed	8.250%	7/1/2039		62,049
	114,854	Loan ID 201038	Fixed	1.500%	5/1/2039		80,681
	462,891	Loan ID 201039	Fixed	3.500%	10/1/2045		336,896
	290,222	Loan ID 201040	Fixed	2.000%	11/1/2045		205,071
	94,062	Loan ID 201041	Fixed	3.750%	11/1/2052		80,558
	122,817	Loan ID 201042	Fixed	3.000%	8/1/2047		93,911
	118,941	Loan ID 201043	Fixed	2.500%	4/1/2039		98,936
	194,444	Loan ID 201044	Fixed	4.870%	3/29/2037		170,085
	117,397	Loan ID 201045	Fixed	2.000%	7/1/2037		96,387
	274,970	Loan ID 201046	Fixed	2.000%	4/1/2053		205,285
	112,897	Loan ID 201047	Fixed	2.000%	4/1/2053		82,801
	179,912	Loan ID 201048	Fixed	2.000%	4/1/2052		151,851
	503,437	Loan ID 201049	Fixed	2.000%	4/1/2052		326,051
	662,459	Loan ID 201050	Fixed	2.000%	8/1/2053		516,945
	280,746	Loan ID 201051	Fixed	3.174%	9/1/2053		214,083
	132,135	Loan ID 201052	Fixed	2.000%	4/1/2053		97,016
	67,555	Loan ID 201053	Fixed	3.860%	7/1/2053		57,083
	222,657	Loan ID 201054	Fixed	2.400%	5/17/2050		182,337
	603,388	Loan ID 201055	Fixed	3.000%	2/1/2037		496,158
	619,281	Loan ID 201056	Fixed	2.000%	7/1/2054		510,098
	176,283	Loan ID 201057	Fixed	2.000%	1/1/2050		133,942
	146,382	Loan ID 201058	Fixed	2.500%	8/1/2037		120,558
	140,402	Loan ID 201059	Fixed	2.000%	4/1/2053		106,044
	124,129	Loan ID 201060	Fixed	2.625%	3/1/2035		104,181
	89,754	Loan ID 201061	Fixed	3.000%	3/1/2050		75,682
	125,142	Loan ID 201062	Fixed	3.100%	4/1/2047		103,130
	130,181	Loan ID 201063	Fixed	4.000%	9/1/2047		100,727
	52,934	Loan ID 201064	Fixed	2.000%	12/1/2052		38,344
	222,666	Loan ID 201065	Fixed	3.000%	7/1/2037		153,245
	240,695	Loan ID 201066	Fixed	4.250%	12/1/2046		207,248
	454,997	Loan ID 201067	Fixed	4.750%	1/1/2044		389,397
	310,454	Loan ID 201068	Fixed	5.250%	5/1/2044		277,643
	73,378	Loan ID 201069	Fixed	4.625%	12/1/2044		65,294

TOTAL MORTGAGE NOTES (Cost - $151,125,966)*		154,799,142
OTHER INVESTMENTS* (Cost - $554,056)(a) - 0.4%		560,700
TOTAL INVESTMENTS (Cost - $151,680,022)(a) - 104.8%	$	155,359,842
LIABILITIES LESS CASH AND OTHER ASSETS - (4.8)%		(7,167,802	)
NET ASSETS - 100.0%	$	148,192,040

ARM - Adjustable Rate Mortgage

* Illiquid Securities

(a) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is the same as there are no book to tax differences.

Unrealized appreciation:	$	5,493,870
Unrealized depreciation:		(1,814,050	)
Net unrealized appreciation:	$	3,679,820

The accompanying notes are an integral part of these financial statements.

24

Vertical Capital Income Fund

Statement of Assets and Liabilities (Unaudited)

March 31, 2015

Assets:
Investments at Value (identified cost $151,680,022)	$	155,359,842
Cash		595,594
Interest Receivable		664,584
Receivable for Securities Sold and Principal Paydowns		1,368,269
Receivable for Fund Shares Sold		546,169
Prepaid Expenses and Other Assets		198,218
Total Assets		158,732,676
Liabilities:
Line of Credit		5,412,570
Payable for Securities Purchased		5,000,000
Accrued Advisory Fees		115,706
Accrued Security Servicing Fees		6,538
Accrued Shareholder Servicing Fees		1,409
Accrued Expenses and Other Liabilities		4,413
Total Liabilities		10,540,636
Net Assets	$	148,192,040
Composition of Net Assets:
At March 31, 2015, Net Assets consisted of:
Paid-in-Beneficial Interest	$	143,350,637
Accumulated Net Investment Income		122,144
Accumulated Net Realized Gain From Investments		1,039,439
Net Unrealized Appreciation on Investments		3,679,820
Net Assets	$	148,192,040
Net Asset Value Per Share
Net Assets	$	148,192,040
Shares of Beneficial Interest Outstanding (no par value; unlimited shares authorized)		13,039,051
Net Asset Value and Repurchase Price per Share	$	11.37
Offering Price per Share (Maximum sales charge of 4.50%)	$	11.91

The accompanying notes are an integral part of these financial statements.

25

Vertical Capital Income Fund

Statement of Operations (Unaudited)

For the Six Months Ended March 31, 2015

Investment Income:
Interest Income	$	3,961,960
Total Investment Income		3,961,960
Expenses:
Investment Advisory Fees		801,141
Security Servicing Fees		188,897
Administration Fees		59,778
Transfer Agent Fees		54,315
Interest Expense		40,174
Trustees’ Fees		37,124
Custody Fees		36,558
Printing Expense		29,924
Legal Fees		25,930
Fund Accounting Fees		22,365
Line of Credit Fees		19,996
Non Rule 12b-1 Shareholder Servicing Expense		18,413
Registration and Filing Fees		17,452
Audit Fees		17,189
Insurance Expense		15,956
Chief Compliance Officer Fees		13,261
Other Loan Servicing Fees		6,073
Shareholder Servicing Fees		409
Miscellaneous Expense		997
Total Expenses		1,405,952
Less: Expenses Waived by Adviser		(158,422	)
Net Expenses		1,247,530
Net Investment Income		2,714,430
Net Realized and Unrealized Gain on Investments:
Net Realized Gain on Investments		1,214,306
Net Change in Unrealized Appreciation on Investments		2,636,209
Net Realized and Unrealized Gain on Investments		3,850,515
Net Increase in Net Assets Resulting From Operations	$	6,564,945

The accompanying notes are an integral part of these financial statements.

26

Vertical Capital Income Fund

Statements of Changes in Net Assets

	For the Six Months			For the Year
	Ended			Ended
	March 31, 2015			September 30, 2014
	(Unaudited)
Operations:
Net Investment Income	$	2,714,430		$	3,438,040
Net Realized Gain on Investments		1,214,306			530,177
Net Change in Unrealized Appreciation on Investments		2,636,209			828,698
Net Increase in Net Assets
Resulting From Operations		6,564,945			4,796,915
Distributions to Shareholders From:
Net Investment Income ($0.22 and $0.56 per share, respectively)		(2,592,286	)		(3,757,137	)
Net Realized Gains ($0.04 and $0.05 per share, respectively)		(496,914	)		(254,224	)
Total Distributions to Shareholders		(3,089,200	)		(4,011,361	)
Beneficial Interest Transactions:
Proceeds from Shares Issued		38,169,667			71,268,179
Distributions Reinvested		1,670,225			2,305,559
Cost of Shares Redeemed		(3,734,016	)		(5,735,581	)
Total Beneficial Interest Transactions		36,105,876			67,838,157
Total Increase in Net Assets		39,581,621			68,623,711
Net Assets:
Beginning of Period		108,610,419			39,986,708
End of Period (including accumulated net investment income of $122,144 and $0, respectively)	$	148,192,040		$	108,610,419
Share Activity
Shares Issued		3,384,378			6,469,996
Shares Reinvested		148,228			209,971
Shares Redeemed		(328,838	)		(521,780	)
Net Increase in Shares of Beneficial Interest Outstanding		3,203,768			6,158,187

The accompanying notes are an integral part of these financial statements.

27

Vertical Capital Income Fund

Statement of Cash Flows (Unaudited)

For the Six Months Ended March 31, 2015

Increase (Decrease) in Cash
Cash Flows Provided by/(Used for) Operating Activities:
Net Increase in Net Assets Resulting from Operations	$	6,564,945
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash Used for Operating Activities:
Purchases of Long-Term Portfolio Investments		(51,480,439	)
Proceeds from Sale of Long-Term Portfolio Investments and Principal Paydowns		7,234,212
Decrease in Interest Receivable		622,769
Increase in Receivable for Securities Sold and Principal Paydown		(765,783	)
Increase in Receivable for Fund Shares Sold		(284,408	)
Increase in Payable for Securities Purchased		5,000,000
Increase in Prepaid Expenses and Other Assets		(123,812	)
Increase in Accrued Advisory Fees		50,801
Increase in Accrued Shareholder Servicing Fees		409
Decrease in Accrued Administration Fees		(15,398	)
Increase in Accrued Fund Accounting Fees		258
Decrease in Accrued Transfer Agency Fees		(4,135	)
Decrease in Accrued Security Servicing Fees		(12,947	)
Decrease in Accrued Expenses and Other Liabilities		(43,011	)
Net Amortization on Investments		505,598
Net Realized Gain on Investments		(1,214,306	)
Change in Unrealized Appreciation on Investments		(2,636,209	)
Net Cash Used for Operating Activities		(36,601,456	)
Cash Flows Provided by (Used for) Financing Activities:
Proceeds from Sale of Shares		38,169,667
Redemption of Shares		(3,734,016	)
Dividends Paid to Shareholders, Net of Reinvestments		(1,418,975	)
Net cash provided by Line of Credit		1,912,570
Net Cash Provided by Financing Activities		34,929,246
Net Decrease in Cash		(1,672,210	)
Cash at Beginning of Period		2,267,804
Cash at End of Period	$	595,594
Supplemental Disclosure of Cash Flow Information:
Non-Cash Financing Activities Included Reinvestment of Distributions During the Fiscal Period of $1,670,225.

The accompanying notes are an integral part of these financial statements.

28

Vertical Capital Income Fund

Financial Highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Six Months			Year			Year			Period
	Ended			Ended			Ended			Ended
	March 31, 2015			September 30, 2014			September 30, 2013			September 30, 2012**
	(Unaudited)
Net Asset Value, Beginning of Period	$	11.04		$	10.87		$	10.58		$	10.00
From Operations:
Net investment income (a)		0.24			0.51			0.50			0.33
Net gain from investments (both realized and unrealized)		0.36			0.27			0.28			0.44
Total from operations		0.60			0.78			0.78			0.77
Distributions to shareholders from:
Net investment income		(0.23	)		(0.56	)		(0.42	)		(0.19	)
Net realized gains		(0.04	)		(0.05	)		(0.07	)		—
Total distributions		(0.27	)		(0.61	)		(0.49	)		(0.19	)
Net Asset Value, End of Period	$	11.37		$	11.04		$	10.87		$	10.58
Total Return (b)		5.45	% (d)		7.29	%		7.42	%		7.70	% (d)
Ratios/Supplemental Data
Net assets, end of period (in 000’s)	$	148,192		$	108,610		$	39,987		$	11,756
Ratio of gross expenses to average net assets		2.19	% (c)(e)		2.32	% (e)		3.20	%		9.42	% (c)
Ratio of net expenses to average net assets		1.94	% (c)(e)		1.91	% (e)		1.85	%		1.85	% (c)
Ratio of net investment income to average net assets		4.23	% (c)(e)		4.68	% (e)		4.61	%		4.21	% (c)
Portfolio turnover rate		5.12	% (d)		8.37	%		11.68	%		1.50	% (d)

** The Fund commenced operations on December 30, 2011.

(a) Per share amounts are calculated using the average shares method, which more appropriately presents the per share data for the period.

(b) Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, and excludes the effect of sales charges. Had the Adviser not waived expenses, total returns would have been lower.

(c) Annualized.

(d) Not annualized.

(e) Ratio includes 0.09% for the six months ended March 31, 2015 and 0.06% for the year ended September 30, 2014 attributed to interest expense and fees.

The accompanying notes are an integral part of these financial statements.

29

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)

March 31, 2015

1. ORGANIZATION

Vertical Capital Income Fund (the “Fund” or the “Trust”), was organized as a Delaware statutory trust on April 8, 2011 and is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”), as a diversified, closed-end management investment company that operates as an interval fund with a continuous offering of Fund shares. The investment objective of the Fund is to seek income. The Fund commenced operations on December 30, 2011. The Fund currently offers shares at net asset value plus a maximum sales charge of 4.50%.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

Security Valuation

Mortgage Notes – The Fund utilizes a proprietary discounted cash flow model to value its Mortgage Notes. Vertical Capital Asset Management, LLC. (“the Adviser”) uses the model daily to calculate net present value of discounted cash flows based on a combination of servicing data (maturity dates, rates, loan type, etc.) that is fed into the pricing model along with various readily available inputs including yield curves, prepayment speeds, default rates and loss severity assumptions. The future expected cash flows and related treasury yields are also utilized to compare with each individual Mortgage Note yield in the model. That yield is determined as a spread to the interpolated treasury curve, based on market knowledge of the collateral type, prepayment history, average life, and credit quality. The combination of loan level criteria and daily market adjustments produces a daily price for each Mortgage Note relative to current public market conditions.

Prior to purchase, each Mortgage Note goes through a due diligence process that includes considerations such as underwriting borrower credit, employment history, property valuation, and delinquency history with an overall emphasis on repayment of the Mortgage Notes. The purchase price of the Mortgage Notes reflects the overall risk relative to the findings of this due diligence process.

The Fund will invest primarily in Mortgage Notes secured by residential real estate. The market or liquidation value of each type of residential real estate collateral may be adversely affected by numerous factors, including rising interest rates; changes in the national, state and local economic climate and real estate conditions; perceptions of prospective buyers of the safety, convenience and attractiveness of the properties; maintenance and insurance costs; changes in real estate taxes and other expenses; adverse changes in governmental rules and fiscal policies; adverse changes in zoning laws; and other factors beyond the control of the borrowers.

The Fund’s investments in Mortgage Notes are subject to liquidity risk because there is a limited secondary market for Mortgage Notes. Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations.

Securities for which current market quotations are not readily available, such as the Mortgage Notes the Fund invests in, or for which quotations are not deemed to be representative of market values are valued at fair value as determined in good faith by or under the direction of the Trust’s Board of Trustees (the “Board”) in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”). The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the

30

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)(Continued)

March 31, 2015

security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. As described above, the Mortgage Notes, which are fair valued daily, are priced by the Adviser and through a proprietary discounted cash flow model, under the direction of the Board.

The Fund’s senior management contracted with LCAP Advisors to create an asset valuation model along with policies and maintenance procedures for the Fund. The valuation procedures and the Model are reviewed and maintained on a daily basis within the management of the Fund. Any calibrations or adjustments to the model, that may be necessary are done on an as needed basis to ensure accurate pricing. Financial markets are monitored daily by the Adviser relative to interest rate environment along with third party data from the U.S. Department of the Treasury, Reuters and Moody’s which is uploaded into the pricing model along with a daily loan servicing tape. In addition to the readily available data from the financial markets, the Adviser uses a number of pricing criteria that represent the Adviser’s 30 years of credit and collateral underwriting experience related to mortgage notes to accurately value the Mortgage Notes.

The Fund utilizes various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.

Level 2 – Other significant observable inputs other than quoted prices included in Level 1 for the asset or liability, either directly or indirectly. These inputs may include quoted prices for similar investments or identical investments in an active market, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Significant unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following tables summarize the inputs used as of March 31, 2015 for the Fund’s assets measured at fair value:

Assets	Level 1		Level 2		Level 3		Total
Mortgage Notes	$	—	$	—	$	154,799,142	$	154,799,142
Other Investments		—		—		560,700	$	560,700
Total	$	—	$	—	$	155,359,842	$	155,359,842

There were no transfers between levels during the current period presented. It is the Fund’s policy to record transfers into or out of levels at the end of the reporting period.

31

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)(Continued)

March 31, 2015

The following is a reconciliation of assets in which Level 3 inputs were used in determining value:

	Mortgage Notes			Other Investments			Total
Beginning Balance	$	107,654,564		$	110,716		$	107,765,280
Net realized gain (loss)		1,215,370			—			1,215,370
Change in unrealized appreciation (depreciation)		1,540,914			(1,033	)		1,539,881
Cost of purchases		51,480,439			—			51,480,439
Proceeds from sales and principal paydowns		(7,854,952	)		—			(7,854,952	)
Amortization		1,213,507			317			1,213,824
Net Transfers in/out of level 3		(450,700	)		450,700			—
Ending balance	$	154,799,142		$	560,700		$	155,359,842

The total change in unrealized appreciation (depreciation) included in the Statement of Operations attributable to Level 3 investments still held at March 31, 2015 is $1,692,302.

The following table provides quantitative information about the Fund’s Level 3 values, as well as its inputs, as of March 31, 2015. The table is not all-inclusive, but provides information on the significant Level 3 inputs.

						Weighted
					Range of	Average of
				Unobservable	Unobservable	Unobservable
	Value		Valuation Technique	Inputs	Inputs	Inputs
Mortgage Notes	$	154,799,142	Comprehensive pricing model with emphasis on discounted cash flows	Constant prepayment rate	0-200		3.79
				Comparability adjustment	.5% - 27%		6	%
Closing Balance	$	154,799,142

A change to the unobservable input may result in a significant change to the value of the investment as follows:

	Impact to Value if Input	Impact to Value if Input
Unobservable Input	Increases	Decreases
Constant prepayment rate	Increase	Decrease
Comparability adjustment	Decrease	Increase

Cash and Cash Equivalents – Cash and cash equivalents include cash and overnight investments in interest-bearing demand deposits with a financial institution with maturities of three months or less. The Fund maintains deposits with a high quality financial institution in an amount that is in excess of federally insured limits.

Security Transactions and Investment Income – Investment security transactions are accounted for on a trade date basis. Cost is determined and gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes. Interest income is recorded on the accrual basis. Paydown gains and losses are recorded as interest income. Purchase discounts and premiums on securities are accreted and amortized over the life of the respective securities.

32

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)(Continued)

March 31, 2015

Credit Facility – The Fund has entered into a revolving line of credit agreement with Sunwest Bank for investment purposes subject to the limitations of the 1940 Act for borrowings. The maximum amount of borrowing allowed under the agreement is the lesser of $15,000,000 or 33 1/3% of the Fund’s gross assets. The Fund will be charged an annual fee of $25,000 for this agreement. Borrowings under this agreement bear interest at a rate equal to the Wall Street Journal Prime, with a floor rate of 3.25%, per annum, on the principal balance outstanding. During the six months ended March 31, 2015, the Fund utilized the line of credit. The average amount of borrowing for the period was $6,571,641 and the total interest expense for the six months was $40,174. As of March 31, 2015, the Fund had an outstanding loan balance of $5,412,570.

Federal Income Taxes – The Fund intends to continue to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute all of its taxable income, if any, to shareholders. Accordingly, no provision for Federal income taxes is required in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken by the Fund in its 2012 - 2014 tax returns or expected to be taken in the Fund’s 2015 tax returns. The Fund identified its major tax jurisdictions as U.S. Federal, and foreign jurisdictions where the Fund makes significant investments; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Distributions to Shareholders – Distributions from investment income, if any, are declared and paid monthly and are recorded on the ex-dividend date. The Fund will declare and pay net realized capital gains, if any, annually. The character of income and gains to be distributed is determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require classification.

Indemnification – The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, management of the Fund expects the risk of loss due to these warranties and indemnities to be remote.

3. INVESTMENT IN RESTRICTED SECURITIES

Notes secured by a mortgage or deed of trust held by the Fund (“Restricted Securities”), while exempt from registration under the Securities Act of 1933, (the “1933 Act”), are subject to certain restrictions on resale and cannot be sold publicly. The Fund may invest in Restricted Securities that are consistent with the Fund’s investment objectives and investment strategies. Investments in Restricted Securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board of Trustees. The Fund has no rights to compel the obligor or issuer of a Restricted Security to register such a Restricted Security under the 1933 Act.

33

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)(Continued)

March 31, 2015

4. ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS

The business activities of the Fund are overseen by the Board, which is responsible for the overall management of the Fund. Vertical Capital Asset Management, LLC serves as the Fund’s Investment Adviser.

Advisory Fees - Pursuant to an Advisory Agreement with the Fund, the Adviser, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Fund pays the Adviser a management fee, computed and accrued daily and paid monthly, at an annual rate of 1.25% of the average daily net assets of the Fund. For the six months ended March 31, 2015, the Adviser earned advisory fees of $801,141.

The Adviser has contractually agreed to waive all or part of its management fees and/or make payments to limit Fund expenses (exclusive of any front-end or contingent deferred loads, taxes, leverage interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, expenses of investing in Underlying Funds, or extraordinary expenses such as litigation) at least until January 31, 2016, so that the total annual operating expenses of the Fund do not exceed 1.85% of the average daily net assets of the Fund and 2.50% through at least April 30, 2024. Waivers and expense reimbursements may be recouped by the Adviser from the Fund, to the extent that overall expenses fall below the expense limitation, within three years of when the amounts were waived. For the six months ended March 31, 2015, the Adviser waived advisory fees of $158,422. Expenses subject to recapture by the Adviser amounted to $252,754 that will expire on September 30, 2015, $298,390 that will expire on September 30, 2016 and $299,897 that will expire on September 30, 2017.

Distributor – The distributor of the Fund is Northern Lights Distributors, LLC (the “Distributor”). The Board of Trustees of the Fund has adopted, on behalf of the Fund, a Shareholder Servicing Plan to pay for certain shareholder services. Under the Plan, the Fund will pay 0.01% per year of its average daily net assets for such shareholder service activities. For the six months ended March 31, 2015, the Fund incurred shareholder servicing fees of $409.

In addition, certain affiliates of the Distributor provide services to the Fund as follows:

Gemini Fund Services, LLC (“GFS”), an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to separate servicing agreements with GFS, the Fund pays GFS customary fees for providing administration, fund accounting and transfer agency services to the Fund. A Trustee and certain officers of the Fund are also officers of GFS, and are not paid any fees directly by the Fund for serving in such capacities.

Northern Lights Compliance Services, LLC (“NLCS”) - NLCS, an affiliate of GFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Fund.

Gemcom, LLC (“Gemcom”) - Gemcom, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of these services, Gemcom receives customary fees from the Fund.

Security Servicing Agent – The Fund pays Vertical Recovery Management, LLC (“VRM”) a fee equal to 0.25% of the Fund’s average daily net assets for the collections from and maintenance of its securities by providing services such as contacting delinquent borrowers and managing the foreclosure process or other recovery processes for the Fund in the event of a borrower’s default. VRM is an affiliate of the Adviser. For the six months ended March 31, 2015, the Fund incurred security servicing fees of $188,897.

34

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)(Continued)

March 31, 2015

Trustees – The Fund pays each Trustee who is not affiliated with the Trust or Adviser a quarterly fee of $5,000, as well as reimbursement for any reasonable expenses incurred attending meetings. The “interested persons” who serve as Trustees of the Trust receive no compensation for their services as Trustees. None of the executive officers receive compensation from the Trust.

5. INVESTMENT TRANSACTIONS

The cost of purchases and proceeds from sales and paydowns of securities, other than U.S. Government securities and short-term investments, for the six months ended March 31, 2015 amounted to $51,480,239 and $6,881,578, respectively.

6. REPURCHASE OFFERS

Pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended, the Fund offers shareholders on a quarterly basis the option of redeeming shares, at net asset value, of no less than 5% and no more than 25% of the shares outstanding. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer, although each shareholder will have the right to require the Fund to purchase up to and including 5% of such shareholder’s shares in each quarterly repurchase. Limited liquidity will be provided to shareholders only through the Fund’s quarterly repurchases.

During the six months ended March 31, 2015, the Fund completed four quarterly repurchase offers. In those offers, the Fund offered to repurchase up to 5% (and an additional 2% at the Fund’s discretion) of the number of its outstanding shares as of the Repurchase Pricing Dates. The results of those repurchase offers were as follows:

	Repurchase Offer #1			Repurchase Offer #2
Commencement Date		12/15/14			03/20/15
Repurchase Request Deadline		01/20/15			04/24/15
Repurchase Pricing Date		01/20/15			04/24/15
Net Asset Value as of Repurchase Pricing Date	$	11.40		$	11.51
Amount Repurchased	$	1,790,602		$	8,367,814
Percentage of Outstanding Share Repurchased		1.31	%		5.41	%

7. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions for the following years was as follows:

	Fiscal Year Ended		Fiscal Year Ended
	September 30, 2014		September 30, 2013
Ordinary Income	$	3,881,567	$	1,017,974
Long-Term Capital Gain		129,794		—
	$	4,011,361	$	1,017,974

As of September 30, 2014, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed		Undistributed		Capital Loss		Other		Post October Loss		Unrealized		Total
Ordinary		Long-Term		Carry		Book/Tax		and		Appreciation/		Accumulated
Income		Gains		Forwards		Differences		Late Year Loss		(Depreciation)		Earnings/(Deficits)
$	79,247	$	242,800	$	—	$	—	$	—	$	1,043,611	$	1,365,658

35

Vertical Capital Income Fund

Notes to Financial Statements (Unaudited)(Continued)

March 31, 2015

Permanent book and tax differences, primarily attributable to the reclassification of Fund distributions, resulted in reclassification for the year ended September 30, 2014 as follows:

Paid		Undistributed		Accumulated
In		Net Investment		Net Realized
Capital		Income (Loss)		Gains (Loss)
$	—	$	207,702	$	(207,702	)

8. AFFILIATED BROKER COMMISIONS

During the six months ended March 31, 2015, Vertical Recovery Management LLC, an affiliate of the Adviser, provided execution support and trade settlement services on behalf of the Fund. Vertical Recovery Management, LLC received $511,613 in trade-related payments and fees (brokerage commissions).

9. SUBSEQUENT EVENTS

The Fund is required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has determined that there were no subsequent events to report through the issuance of these financial statements.

36

Vertical Capital Income Fund

Disclosure of Fund Expenses (Unaudited)

March 31, 2015

As a shareholder of the Fund, you incur (i) transaction costs, such as sales loads and (ii) ongoing costs, including management fees, distribution and/or service fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. Please note, the expenses shown in the tables are meant to highlight ongoing costs only and do not reflect any transactional costs.

This example is based on an investment of $1,000 invested for the period of time as indicated in the table below.

Actual Expenses: The first line of the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.

Hypothetical Examples for Comparison Purposes: The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs which may be applicable to your account. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning		Expenses Paid During
	Account	Ending Account	the Period*
	Value	Value	(10/1/14 to
	(10/1/14)	(3/31/15)	3/31/15)
Actual	$1,000.00	$1,054.50	$ 9.48
Hypothetical
(5% return before expenses)	$1,000.00	$1,015.71	$ 9.30

* Expenses Paid During the Period are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio of 1.85% multiplied by the number of days in the period (182) divided by the number of days in the fiscal year (365).

PORTFOLIO COMPOSITION** (Unaudited)
Mortgage Notes	99.6	%
Other Investments	0.4	%
	100.0	%

**  Based on Portfolio Market Value as of March 31, 2015

37

Supplemental Information (Unaudited)

FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN RENEWAL OF THE INVESTMENT ADVISORY AGREEMENT*

In connection with a meeting of the Board of Trustees of the Trust held on November 14, 2014 (the “Meeting”), the Board, including the Independent Trustees, discussed the renewal of a Management Agreement (the “Agreement”) between the Trust and Vertical Capital Asset Management, LLC (the “Adviser”), on behalf of the Vertical Capita Income l Fund (the “Fund”). In considering the Agreement, the Board interviewed representatives of the Adviser and received materials specifically relating to the Agreement. In its consideration of the Agreement, the Board, including the Independent Trustees, did not identify any single factor as all-important or controlling, and the following summary does not detail all the matters considered. Matters considered by the Board, including the Independent Trustees, in connection with its approval of the Agreement included the following:

Nature, Extent and Quality of Services. The Board examined the nature, extent and quality of the services provided by the Adviser to the Fund. The Trustee’s discussed the Adviser’s robust and rigorous investment process, the level of detail the Adviser puts into its analysis of each note representing loans in the Fund’s portfolio, and the Adviser’s efforts to maximize the Fund’s performance by sourcing notes including those representing impaired and delinquent loans. The Board also noted that the Adviser has built a strong team to handle the growth of the Fund. The Board concluded that they were satisfied the Adviser will continue to deliver a high quality of services to the Fund and its shareholders.

Performance of the Adviser. The Trustees then reviewed the performance of the Fund over various time periods relative to the Barclay’s Capital U.S. MBS Index and noted its outperformance over the Index during all periods presented, including since the Fund’s inception. The Board also noted the Fund’s performance at fiscal year-end compared to a group of closed-end mortgage related funds and noted it underperformed relative to the exchange-traded quasi-peer group average and interval funds quasi-peer group average but exceeded the exchange-traded quasi-peer group and interval funds quasi-peer group minimum. The Trustees considered the different characteristics of the Fund relative to the quasi-peer groups, the and Trustees concluded that they were satisfied with the Fund’s performance.

Fees and Expenses. The Trustees reviewed information regarding comparative fees charged by advisers to a group of mortgage related closed-end funds. The Trustees noted that the Adviser’s fees were lower than the average for the exchange-traded closed-end funds and lower than the average of the selected group of closed-end interval funds; and the Fund’s operating expenses were also lower than the average of these groups. Additionally, the Trustees noted the Fund benefits from an expense limitation agreement provided by the Adviser. The Trustees further noted that management was willing to discuss breakpoints as the Fund grows. It was the consensus of the Board that, based on the Fund’s unique strategy, the specialized nature of the Fund and the Adviser’s experience and expertise, the management fee and expenses were reasonable.

Profitability. The Board reviewed a profitability analysis provided by the Adviser, which disclosed that the Adviser had waived a portion of its advisory fees since the Fund’s inception. The Board discussed the other revenue received by the Adviser and its affiliate for services delivered to the Fund, as well as other Fund related expenses incurred by the Adviser. The Trustees concluded that the Adviser had not directly profited from its relationship with the Fund.

Economies of Scale. The Trustees concluded that, based on current asset levels and total expenses, the benefits to be derived from economies of scale were not relevant considerations at this time; but they would re-examine the issue in the future following any significant growth in Fund assets or a change in circumstances related to economics. The Trustees agreed that, as the Fund grows, the Adviser, may not achieve meaningful economies because the Fund invests in small individual notes and therefore, the work load will increase proportionately with the Fund’s growth.

38

Conclusion. Having requested and received such information from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Advisory Agreement, and as assisted by the advice of independent counsel, the Board, including the Independent Trustees, concluded that the advisory fee structure is reasonable.

* Due to the timing of the contract renewal schedule, these deliberations may or may not relate to the current performance results of the Fund.

39

Vertical Capital Income Fund

Change in Accountants (Unaudited)

March 31, 2015

On February 19, 2015, BBD LLP (“BBD”) resigned as the Fund’s auditor.

BBD’s reports on the Fund’s financial statements for the periods prior to October 1, 2014 did not contain an adverse opinion or a disclaimer of opinion, nor were such reports qualified or modified as to uncertainty, audit scope or accounting principles.

During the periods ended prior to October 1, 2014, there were no disagreements between the Fund and BBD on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of BBD, would have caused it to make reference to the subject matter of the disagreement in its report on the financial statements for such period.

During the periods ended prior to October 1, 2014, there were no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).

40

PRIVACY NOTICE

Rev. May 2012

FACTS	WHAT DOES VERTICAL CAPITAL INCOME FUND DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include:
	■	Social Security number	■	Purchase History
	■	Assets	■	Account Balances
	■	Retirement Assets	■	Account Transactions
	■	Transaction History	■	Wire Transfer Instructions
	■	Checking Account Information
	When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Vertical Capital Income Fund chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does Vertical Capital Income Fund share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share

Questions?        Call 1-866-277-VCIF

41

Rev. May 2012

Who we are
Who is providing this notice?	Vertical Capital Income Fund
What we do
How does Vertical Capital Income Fund protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
How does Vertical Capital Income Fund collect my personal information?	We collect your personal information, for example, when you ■    Open an account ■    Provide account information ■    Give us your contact information ■    Make deposits or withdrawals from your account ■    Make a wire transfer ■    Tell us where to send the money ■    Tells us who receives the money ■    Show your government-issued ID ■    Show your driver’s license We also collect your personal information from other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only ■     Sharing for affiliates’ everyday business purposes – information about your creditworthiness ■      Affiliates from using your information to market to you ■      Sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ■    Vertical Capital Income Fund does not share with our affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies ■    Vertical Capital Income Fund does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ■    Vertical Capital Income Fund doesn’t jointly market.

42

How to Obtain Proxy Voting Information

Information regarding how the Fund votes proxies relating to portfolio securities for the 12 month period ended June 30th as well as a description of the policies and procedures that the Fund used to determine how to vote proxies is available without charge, upon request, by calling 1-866-277-VCIF by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

How to Obtain 1st and 3rd Fiscal Quarter Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-866-277-VCIF.

Investment Adviser

Vertical Capital Asset Management, LLC

20 Pacifica, Suite 190

Irvine, CA 92618

Administrator

Gemini Fund Services, LLC

80 Arkay Drive

Hauppauge, NY 11788

Item 2. Code of Ethics. Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Companies. Not applicable.

Item 6. Schedule of Investments. See Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable for semi-annual reports.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable.

Item 10. Submission of Matters to a Vote of Security Holder. None.

Item 11. Controls and Procedures.

(a) Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report (in the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certification(s) required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.

(a)(3) Not applicable.

(b) Certification(s) required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Vertical Capital Income Fund

By (Signature and Title)

*             /s/Bayard Closser

Bayard Closser, Principal Executive Officer

Date 6/4/15

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)

*             /s/Bayard Closser

Bayard Closser, Principal Executive Officer

Date 6/4/15

By (Signature and Title)

*             /s/Bayard Closser

Bayard Closser, Principal Financial Officer

Date 6/4/15

* Print the name and title of each signing officer under his or her signature.